Demand for a Good Is Inelastic If

question 105

Multiple Choice

Demand for a good is inelastic if:

• A) total revenue decreases when price decreases.
• B) the quantity effect outweighs the price effect of a price increase.
• C) the absolute value of price elasticity is greater than 1.
• D) None of these is true.

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Definitions:

Confidence Interval

A range of values, derived from sample data, that is likely to contain the population parameter of interest with a specified probability.

Population Mean

The average value of all members of a population.

Standard Deviation

A numerical value calculating how much the dataset deviates from its average, illustrating the breadth of data distribution.

Confidence Interval

A range of values derived from sample data that is likely to contain the true value of an unknown population parameter.