Use the Diagram Below to Answer This Question

question 220

Multiple Choice

Use the diagram below to answer this question.

For this demand curve, the price elasticity of demand is

• A) more elastic at $3 than at $2.
• B) more elastic at $2 than at $3.
• C) identical at $2 to that at $3.
• D) equal to 1.0 over the range from $3 to $2.

---

Definitions:

Unbiased Estimator

A statistic used to estimate a parameter that is expected to equal the true parameter of the population.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter with a certain level of confidence.

Population Parameter

A numerical characteristic or measure that describes an aspect of a population.

Sampling Error

The discrepancy between the statistical characteristics of a sample and those of the population from which the sample was drawn.