At a Price of $1

question 10

Multiple Choice

At a price of $1.00,a local coffee shop is willing to supply 100 cinnamon rolls per day.At a price of $1.20,the coffee shop would be willing to supply 150 cinnamon rolls per day.Using the midpoint method,the price elasticity of supply is about

• A)0.45
• B)0.90
• C)1.11
• D)2.20

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the data points are from the mean.

T-distribution

A probability distribution that is used to estimate population parameters when the sample size is small and/or when the population variance is unknown.

Test Statistic

A test statistic is a value calculated from sample data during a hypothesis test. It's compared to a critical value to decide whether to reject the null hypothesis.

μ

The symbol for the mean or average of a set of data points in statistics.