An Increase in the Price of Computer Diskettes Leads to an Increase

question 105

Multiple Choice

An increase in the price of computer diskettes leads to an increase in total expenditures on the diskettes. Which of the following is true for this price change?

• A) Computer diskettes are an inferior good.
• B) The demand for computer diskettes is perfectly elastic.
• C) The demand for computer diskettes is inelastic.
• D) The demand for computer diskettes is elastic.

---

Definitions:

Sample Standard Deviation

A measure of the dispersion or spread of data points in a sample from its mean.

Hypotheses

Testable statements or predictions, often derived from a theoretical framework, that can be tested through empirical research.

Sample Mean

The average of a subset of a larger population, used to estimate the population mean.

Sample Data

Data collected or selected from a larger population, used in statistical analysis to make inferences about the population.