If a 30 Percent Price Increase Generates a 20 Percent

question 297

Multiple Choice

If a 30 percent price increase generates a 20 percent decrease in quantity demanded,then demand is

• A) inelastic.
• B) elastic.
• C) unit elastic.
• D) perfectly elastic.
• E) perfectly inelastic.

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Definitions:

Statistical Criteria

Standards or rules used in statistics to make decisions or interpretations about data, such as significance tests.

Sample

A subset of individuals, events, or items selected from a larger population used to conduct statistical analysis.

Pie Graph

A circular chart divided into sectors, each sector shows the relative size of some data.

Histogram

A graphical representation showing a frequency distribution where the data is grouped into ranges and represented by bars.