The Demand Function for a Certain Make of Exercise Bicycle

question 95

Multiple Choice

The demand function for a certain make of exercise bicycle sold exclusively through cable television is , where p is the unit price in hundreds of dollars and x is the quantity demanded/week. ​
Compute the elasticity of demand and determine the range of prices corresponding to inelastic, unitary, and elastic demand.
​

• A) ; for demand is inelastic; for demand is unitary; for demand is elastic
• B) ​ ; for demand is inelastic; for demand is unitary; for demand is elastic​
• C) ​ ; for demand is inelastic; for demand is unitary; for demand is elastic​
• D) ​ ; for demand is inelastic; for demand is unitary; for demand is elastic​

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Definitions:

Null Hypothesis

A statistical hypothesis that proposes there is no significant difference or effect and that any observed variation is due to chance.

Critical Value

A threshold value in hypothesis testing that separates the region where the null hypothesis is rejected from the region where it is not.

Effect Size

A quantitative measure of the magnitude of the difference between groups or the strength of a relationship.

Simple Formula

An equation or expression that straightforwardly expresses a mathematical relationship between variables or quantities.