If a 25% Change in Price Results in a 40

question 397

Multiple Choice

If a 25% change in price results in a 40% change in quantity supplied,then the price elasticity of supply is

• A) 0.63,and supply is elastic.
• B) 0.63,and supply is inelastic.
• C) 1.60,and supply is elastic.
• D) 1.60,and supply is inelastic.

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Definitions:

One-sample T Statistic

A statistic used in hypothesis testing that compares the mean of a single sample to a known value, often to determine if the sample mean differs significantly from the population mean.

Electronic Control

The use of electronic devices or systems to regulate the operation of machines or processes, enhancing efficiency, accuracy, and safety.

Calibration

The process of adjusting and verifying the accuracy of a measuring instrument by comparison with a standard.

Significance Test

A statistical procedure used to test if the observed results significantly differ from what was expected under the null hypothesis.