If Demand Is Elastic,then

question 45

Multiple Choice

If demand is elastic,then

• A)An increase in price will reduce total revenue.
• B)An increase in price will increase total revenue.
• C)A decrease in price will reduce total revenue.

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Definitions:

Linearly Related

Shows a direct correlation between two variables in which the rate of increase or decrease in one variable is consistent with the rate in the other variable.

Indicator Variables

Indicator variables, also known as dummy variables, are used in statistical models to represent categorical data by assigning a binary value (usually 0 or 1) to each category.

Indicator Variables

Variables in statistical modeling, often binary, used to represent the presence or absence of a characteristic.

Dependent Variables

Dependent variables are the outcomes or responses that researchers are trying to explain or predict, which change based on other variables.