In Which of the Following Instances Will Total Revenues Decline

question 274

Multiple Choice

In which of the following instances will total revenues decline?

• A)price rises and Ed equals 0.41
• B)price rises and demand is of unit elasticity
• C)price falls and demand is elastic
• D)price rises and Ed equals 2.47

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Definitions:

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations to the independent variable.

Highly Correlated

Refers to two or more variables that have a strong linear relationship with each other, indicated by a correlation coefficient close to either 1 or -1.

Linear Regression Model

An approach in statistics that aims to represent the connection between a dependent variable and one or more independent variables through the application of a linear equation to the data observed.

Random Error Term

A variable in statistical models that represents unexplained or random fluctuations in the observed data, not accounted for by the explanatory variables.