Assume a Change in Price Causes the Price Elasticity of Demand

question 48

Multiple Choice

Assume a change in price causes the price elasticity of demand for a good (in absolute value) and marginal revenue to decrease.In this case we can conclude that the price of the good was:

• A)increased.
• B)held constant.
• C)decreased.
• D)cannot be determined.

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Definitions:

Quantitative Variable

A variable that can be measured numerically and expresses quantities.

Frequency Distribution

A summary of how often different values occur within a data set, often represented as a table or graph.

Scale Levels

Categories that describe the nature of data measurement, including nominal, ordinal, interval, and ratio scales.

Quantitative Distinctions

Differences that can be measured or described using numbers.