If the Demand for Digital Cameras Is Price Elastic

question 57

Multiple Choice

If the demand for digital cameras is price elastic

• A) they will have a high price.
• B) they are probably in demand.
• C) an increase in price will not measurably reduce sales.
• D) a decrease in price increases the total amount spent on them.
• E) the elasticity coefficient equals 1.

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Definitions:

Factor Analyses

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations among multiple observed variables.

Statistical Tests

Formal methods of making a decision or reaching a conclusion based on data analysis.

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