If the Price of Good X Increases by 1 Percent

question 63

Multiple Choice

If the price of good X increases by 1 percent, then the quantity supplied increases by more than 1 percent. This means

• A) supply is elastic.
• B) supply is unit-elastic.
• C) supply is inelastic.
• D) the good has good substitutes.

---

Definitions:

Qualitative Variables

Variables that categorize or describe attribute characteristics without a natural numerical order or ranking.

Regression Model

A mathematical model that describes the relationship between a dependent variable and one or more independent variables.

Multiple Regression

A statistical technique used to model and analyze the relationship between a dependent variable and two or more independent variables.

Independent Variables

Variables in an experiment or regression model that are manipulated or categorized to determine their effect on dependent variables.