If the Price Elasticity of Demand for Apples Is Greater

question 272

Multiple Choice

If the price elasticity of demand for apples is greater than 1, an increase in apple prices will

• A) raise total revenue.
• B) lower total revenue.
• C) not affect total revenue.
• D) either raise or lower total revenue, but it is impossible to determine which.

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Definitions:

Negative Number

A real number that is less than zero, indicating a direction opposite to positive numbers.

Null Hypothesis

A type of hypothesis used in statistics that proposes there is no statistical significance between two variables, or that a statement of no effect or no difference will be true.

Two-Tailed

In hypothesis testing, it refers to the methodology that considers both directions of a possible effect, allowing for investigation of deviations in two opposite directions from the null hypothesis.

Pearson Correlation

A metric that quantifies the linear relationship between two variables, providing a value in the range of -1 to 1.