When the Price of a Cup of Coffee Falls from $3.00

question 53

Multiple Choice

When the price of a cup of coffee falls from $3.00 to $2.50, the quantity demanded increases from 1,000 per month to 1,150 per month. Using the midpoint method, the price elasticity of demand is

• A) 0.77.
• B) 1.30.
• C) 0.07.
• D) 2.50.
• E) 3.00.

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Definitions:

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together. Values range from -1 to 1, where 1 means perfect positive correlation, and -1 means perfect negative correlation.

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Questionable Research Practices

Behaviors in research that compromise the integrity of the scientific process, including p-hacking, selective reporting, and data fabrication.

Open Science

A set of emerging principles intended to improve the transparency of scientific research and that encourage fully reporting all methods and variables used in a study, reporting studies that failed as well as succeeded, and sharing data among scientists.