Recall the Application About Choosing a Price for Drones Based

question 121

Multiple Choice

Recall the Application about choosing a price for drones based on a linear demand curve to answer the following question(s) .
-Recall the Application. Suppose a firm that produces drones has a linear demand curve for its product, with a vertical intercept of $1,500. If the firm initially charged a price of $500 and then raised its price to $750, the firm's total revenue would ________ and total cost would ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decease

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Definitions:

Null Hypothesis

A statement used in statistics that proposes no significant difference or effect.

Test Statistic

A value calculated from sample data that is used in hypothesis testing to determine if there is evidence to reject the null hypothesis.

Inferential Statistics

A branch of statistics focused on drawing conclusions and making predictions about a population based on a sample.

Inferential Parameters

Parameters derived from sample data for the purpose of making inferences about the larger population.