Figure 7-5 -Which of the Following Is True for the Demand Curve

question 66

Multiple Choice

Figure 7-5
-Which of the following is true for the demand curve depicted in Figure 7-5?

• A) In the $3 to $4 range, the price elasticity of the demand curve equals 1.
• B) At a price of $3, the price elasticity of the demand curve equals approximately −3.3.
• C) In the $3 to $4 range, the demand curve is inelastic.
• D) In the $3 to $4 range, the demand curve is elastic.

---

Definitions:

Random Sample

A selection method where each member of a population has an equal chance of being included, ensuring the sample's representativeness of the entire population.

Equal Chance

This term means having the same probability or likelihood of occurring as another event, situation, or outcome.

Statistically Significant

A term indicating that the likelihood of an observed difference or relationship happening by chance is low, typically below a pre-set threshold of probability.

P-value

A statistical measure indicating the probability that the observed data would occur by chance if the null hypothesis were true.