Suppose the Own-Price Elasticity of Demand for Good X Is

question 73

Multiple Choice

Suppose the own-price elasticity of demand for good X is -0.5, and that the price of good X increases by 10%.What would you expect to happen to the total expenditures on good X?

• A)increase.
• B)decrease.
• C)unchanged.
• D)neither increase, decrease nor remain unchanged.

---

Definitions:

Confounds

Variables that researchers fail to control or eliminate, which can cause a misunderstanding of the causal relationship in a study.

Operational Definitions

Clearly defined criteria or measures used to describe and quantify a concept or variable in research.

Conceptual Replicability

refers to the extent to which research findings can be confirmed or supported through studies with similar conceptual frameworks but different methods.

External Validity

Describes the extent to which research findings can be generalized or applied to settings, populations, or times beyond the scope of the original study.