The Elasticity of Demand for Gasoline Has Been Estimated to Be

question 97

Multiple Choice

The elasticity of demand for gasoline has been estimated to be -2.0, and the standard error is 0.25.The t-statistic for the estimated elasticity of demand for gasoline is

• A)-8, indicating a statistically significant elasticity estimate at the 95% confidence level.
• B)-0.5, indicating a statistically insignificant elasticity estimate at the 95% confidence level.
• C)8, indicating a statistically insignificant elasticity estimate at the 95% confidence level.
• D)0.5, indicating a statistically significant elasticity estimate at the 95% confidence level.

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