When the Price of Sugar Was "Low", Consumers in the U.S.spent

question 161

Multiple Choice

When the price of sugar was "low", consumers in the U.S.spent a total of $3 billion annually on sugar consumption.When the price doubled, consumer expenditures increased to $5 billion annually.This data indicates that:

• A)The demand for sugar is inelastic.
• B)The demand curve for sugar is upward sloping.
• C)The quantity demanded of sugar increased.
• D)the demand curve for sugar is upward sloping and the quantity demanded of sugar increased.

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Definitions:

Test Statistic

A value calculated from sample data that is used in statistical hypothesis testing to determine whether to reject the null hypothesis.

Correlation Coefficient

A measure indicating the extent to which two variables change together, ranging from -1 to 1.

One-tailed Test

A hypothesis test in which the values for which we can reject the null hypothesis are located entirely in one tail of the probability distribution.

Two-tailed Test

A statistical hypothesis test in which the area of rejection is on both tails of the normal distribution, testing for the possibility of both positive and negative differences.