A Straight- Line Demand Curve with Negative Slope Intersects the Horizontal

question 24

Multiple Choice

A straight- line demand curve with negative slope intersects the horizontal axis at 200 tonnes per week. The point on the demand curve at which the price elasticity of demand is 1 corresponds to a quantity demanded

• A) of 200 tonnes.
• B) of 100 tonnes.
• C) of zero tonnes.
• D) that would be negative if a negative quantity demanded were possible.

---

Definitions:

Z-test

An analysis technique that evaluates the difference in means between two populations with known variances and substantial sample sizes.

Nominal Data

Data categorized without a natural order or ranking, distinguished merely by name.

Binomial Experiment

A statistical experiment that adheres to the following criteria: fixed number of trials, only two possible outcomes, constant probability of success, and independence between trials.

Chi-squared Distribution

A statistical distribution used extensively in hypothesis testing, particularly in tests of independence and goodness-of-fit.