A Price Elasticity of 0

question 71

Multiple Choice

A price elasticity of 0.25 means that if price changes by 10%, then quantity will change by:

• A) 2.5%.
• B) .125%.
• C) 2.25%.
• D) 1.25%.

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Definitions:

Discrete Distribution

A type of probability distribution where the variable can take on a countable number of distinct values.

Probability Density Function

A function that describes the likelihood of a continuous random variable falling within a particular range of values.

Total Area

In statistical terms, often refers to the entirety of the area under a probability distribution curve, which equals 1 or 100%.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about a population.