Exhibit 5-2 Price and Quantity Demanded Data -The Data in Exhibit 5-2 Shows That Price Elasticity of c

question 45

Multiple Choice

Exhibit 5-2 Price and quantity demanded data $$\begin{array} { | c | c | } \hline \text { Price } & \text { Quantity Demanded } \\\hline 5 & 20 \\4 & 25 \\3 & 30 \\2 & 35 \\1 & 40 \\\hline\end{array}$$
-The data in Exhibit 5-2 shows that price elasticity of demand is:

• A) increasing as the price decreases.
• B) decreasing as the price increases.
• C) increasing as the quantity increases.
• D) decreasing as the quantity decreases.
• E) decreasing as the quantity increases.

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Definitions:

Ratio Data

A type of quantitative data that possesses a natural zero point and allows for meaningful comparisons using division, enabling measurement of both differences and ratios between data points.

Variance

Variance is a statistical measure that represents the degree to which a set of observations differ from each other. It is the expectation of the squared deviation of a random variable from its mean, and it gives insights into the dispersion of a dataset.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Nominal Data

Data categorized into discrete groups or categories without any inherent order or ranking.