Graph 5-2 -If There Is a 10 Per Cent Increase in the Cent

question 176

Multiple Choice

Graph 5-2

-If there is a 10 per cent increase in the price of a good and this leads to a four per cent decrease in the quantity demanded then the price elasticity is:

• A) 2.5 and elastic
• B) 2.5 and inelastic
• C) 0.4 and elastic
• D) 0.4 and inelastic

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Definitions:

Preexisting Groups

Groups that have been formed before the implementation of a study, not generated by random assignment or manipulation by the researcher.

Random Assignment

A method of assigning individuals or units to different groups in an experiment using randomization to ensure every participant has an equal chance of being placed in any group.

Independent Variable

A variable whose variation does not depend on that of another, often manipulated by the researcher to determine its effect on a dependent variable.

Research Hypothesis

An assertion or conjecture regarding the outcome of a study, proposing a potential relationship between variables.