If the Price Elasticity of Demand for a Good Is

question 45

Multiple Choice

If the price elasticity of demand for a good is 2,then a 10 percent decrease in the quantity demanded must be the result of

• A)a 0.2 percent increase in the price.
• B)a 2.5 percent increase in the price.
• C)a 5 percent increase in the price.
• D)a 20 percent increase in the price.

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Definitions:

Experimental Manipulation

Involves altering one or more variables in a controlled setting to study their effects on other variables, a key method in experimental research designs.

Independent Variable

The variable in an experiment that is manipulated or varied by the researcher to examine its impact on the dependent variable.

Desired Dimension

A specific aspect or feature of a program or intervention that is targeted for measurement or evaluation.

Type II Errors

False negatives in statistical hypothesis testing, where a real effect or difference is missed because it is incorrectly assumed there's no effect.