Use the Figure Below to Answer the Following Question

question 158

Multiple Choice

Use the figure below to answer the following question. Figure 4.1.1
-Figure 4.1.1 illustrates a linear demand curve.Comparing the price elasticity when price is $3 with the price elasticity when price is $8,we can conclude that

• A)demand is more elastic when price is $8.
• B)demand is more elastic when price is $3.
• C)the price elasticity of demand is equal when price is $8 and when price is $3.
• D)demand is elastic when price is $8 and unit elastic when price is $3.
• E)demand is inelastic when price is $3 and unit elastic when price is $8.

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Definitions:

Confidence Level

The probability, expressed as a percentage, that the result of a statistical test will fall within the specified confidence interval.

Plus Four Estimate

A technique used in calculating confidence intervals for proportions where four is added to the number of successes and failures each before calculating the proportion.

Autoxidation

A process involving the oxidation of substances by atmospheric oxygen, often leading to gradual degradation.

Dibenzyl Ether

An organic compound consisting of two benzyl groups connected by an ether linkage, used as a fragrance and flavoring agent.