A Negative Correlation Means That Decreases in the X Variable

question 73

True/False

A negative correlation means that decreases in the X variable tend to be accompanied by decreases in the Y variable.

---

Definitions:

Total Revenue

The total amount of money a firm receives from sales of its products or services, calculated by multiplying the price per unit by the total number of units sold.

Price-inelastic

Price-inelastic describes a situation where the demand for a product or service is relatively unresponsive to changes in its price.

Linear Demand Curve

A graphical representation showing a straight-line relationship between the quantity demanded of a good and its price.

Price Elasticity

A measure of the sensitivity of demand for a product in response to a change in its price.