When the Price of a CD Is $13 Per CD

question 483

Multiple Choice

When the price of a CD is $13 per CD, 39,000,000 CDs per year are supplied. When the price is $15 per CD, 41,000,000 CDs per year are supplied. What is the elasticity of supply for CDs?

• A) 2.86
• B) 0.35
• C) 0.14
• D) 0.05

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Definitions:

Sum of Squared Scores

A measure in statistics that represents the total deviation of each score from the mean, squared and summed up.

Data

Information collected for reference or analysis, often numeric or categorical, used in making decisions or evaluating conditions.

Variance

A measure of the dispersion of a set of data points around their mean, indicating how spread out the data points are.

Data

Facts and statistics collected together for reference or analysis, often seen as the basis for decision making or scientific research.