You Own a Small Store

question 239

Multiple Choice

You own a small store.Your cashier thinks you should raise prices to increase your total revenue and your customer thinks you should lower prices to increase your total revenue.The cashier thinks the price elasticity of demand is ________ and the customer believes the price elasticity of demand is ________.

• A) inelastic; elastic
• B) elastic; inelastic
• C) elastic; elastic
• D) inelastic; inelastic
• E) unit elastic; elastic

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Definitions:

P-value

The probability of observing results as extreme as the results actually observed, under the assumption that the null hypothesis is true.

Hypotheses

Proposed explanations for a phenomenon, set as a basis for further investigation to prove or disprove.

Forbes 500 List

An annual ranking of the top 500 publicly traded companies in the United States by Forbes magazine, based on criteria such as sales, profits, and market value.

Regression

A statistical method used for estimating the relationships among variables, often to predict the value of a dependent variable based on the values of one or more independent variables.