At a Price of $5, Quantity Demanded Is 70; and at a Price

question 181

Multiple Choice

At a price of $5, quantity demanded is 70; and at a price of $7, quantity demanded is 50. Since total revenue ________ by the price increase, demand must be ________.

• A) is increased; elastic
• B) is decreased; inelastic
• C) is unchanged; unit elastic
• D) is unchanged; elastic

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Definitions:

Spurious

Describes something that is not genuine, authentic, or true; often used in statistics to refer to coincidental correlations between two variables that are actually caused by a third variable.

Control Variable

In experimental research, a variable that is kept constant to test the relative impact of an independent variable on a dependent variable.

Immigrant Status

The legal condition of a person who has come to live permanently in a country where they were not born, often impacting their rights and obligations.

Canadian-Born

Individuals who were born in Canada, regardless of their parents' nationality.