Susan's Price Elasticity of Restaurant Meals Is 2

question 86

Multiple Choice

Susan's price elasticity of restaurant meals is 2.27. If the price of a restaurant meal falls by 2 percent, the quantity of restaurant meals Susan demands will:

• A) increase by 2.27 percent.
• B) fall by 2.27 percent.
• C) increase by 4.54 percent.
• D) increase by 22.7 percent.

---

Definitions:

Mean

In statistics, the arithmetic average of a set of numbers, calculated by adding all the values together and then dividing by the number of values.

P Value

A statistical measure that indicates the probability of the observed data occurring under the null hypothesis, used in hypothesis testing to determine significance.

95% Confidence Intervals

Statistical ranges, with a 95% surety, where the true value of a parameter, like a mean, is expected to lie.

Means

Methods or resources available to accomplish an end or to achieve a desired outcome.