Refer to the Information Provided in Figure 5

question 20

Multiple Choice

Refer to the information provided in Figure 5.3 below to answer the question(s) that follow. Figure 5.3
-Refer to Figure 5.3. Using the midpoint formula, if the price of a gardenburger increases from $7 to $9, the price elasticity of demand equals ________ and the increase results in a(n) ________ in total revenue.

• A) -0.375; increase
• B) -0.5; decrease
• C) -2.67; decrease
• D) -8; decrease

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Definitions:

Normally Distributed

A term describing a dataset that exhibits the properties of a normal distribution, specifically symmetry around the mean, with a bell-shaped curve where data tails off symmetrically at both ends.

Manufacturer

A company or entity that makes goods for sale by processing raw materials and assembling components, often on a large scale.

Unknown Mean

A parameter of a population that has not been determined.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values differ from the mean of the data set.