Suppose That the Price Elasticity of Demand for Bottled Water

question 26

Multiple Choice

Suppose that the price elasticity of demand for bottled water in Sackville,New Brunswick is 1.5,and the price elasticity of demand for bottled water in Prince Albert,Saskatchewan is 0.8.The demand for bottled water in Sackville is ________ and demand for bottled water in Prince Albert is ________.

• A)unit elastic;unit elastic
• B)perfectly elastic;inelastic
• C)inelastic;elastic
• D)elastic;inelastic
• E)elastic;unit elastic

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Definitions:

Alternative Hypothesis

The hypothesis that suggests there is a significant difference between two variables, contrary to the null hypothesis.

Populations

In statistics, this term refers to the entire pool from which a statistical sample is drawn and is the subject of a study.

Caffeinated Beverages

Drinks that contain caffeine, a stimulant that can affect the central nervous system.

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples, testing the null hypothesis that their population mean ranks differ.