Which of the Following Would Result in Higher Price Elasticity

question 39

Multiple Choice

Which of the following would result in higher price elasticity of good X?

• A)more substitutes for good X
• B)a shorter period of time has passed since the change in the price of good X
• C)lower costs of labor in the production of good X
• D)good X is more of a necessity than a luxury

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Definitions:

Type II Error

The statistical mistake of failing to reject a null hypothesis when it is actually false.

Null Hypothesis

A statistical hypothesis that proposes there is no significant difference or effect within the specified population.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, asserting there is a significant difference or effect.

Type I Error

The mistaken dismissal of a correct null hypothesis, often referred to as a "false positive."