TABLE 2-5 The Following Are the Duration in Minutes of a Sample

question 6

Multiple Choice

TABLE 2-5
The following are the duration in minutes of a sample of long-distance phone calls made within the continental United States reported by one long-distance carrier.
-Referring to Table 2-5, what is the cumulative relative frequency for the percentage of calls that lasted 10 minutes or more?

• A) 0.16
• B) 0.24
• C) 0.41
• D) 0.90

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Definitions:

Inelastic

Inelastic describes a situation where the demand or supply for a good or service is not significantly changed by variations in price.

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they do pay.

Tax

A mandatory monetary contribution or different sort of tax levied on a taxpayer by a government entity to finance government expenditure and assorted public costs.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is distorted.