If the Price of Good X Falls and the Demand

question 1

Multiple Choice

If the price of good X falls and the demand for good X is inelastic, then the percentage __________ in quantity demanded is __________ the percentage fall in price, and total revenue __________.

• A)fall; greater than; rises
• B)rise; less than; rises
• C)fall; equal to; remains constant
• D)rise; less than; falls
• E)fall; greater than; falls

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Definitions:

Chance

The occurrence and development of events in the absence of any obvious design or intent.

Dependent Variable

In experimentation, it's the variable being tested and measured, which is expected to change under the influence of the independent variable.

Normal Distribution

A bell-shaped curve that represents the distribution of many types of data where most occurrences take place in the middle of the range.

Experimenter Bias

A form of bias in research where the expectations or preferences of the researcher inadvertently affect the outcome of the study.