What Does the Following Statement Imply About Price Elasticity of Demand

question 146

Multiple Choice

What does the following statement imply about price elasticity of demand? "Cherry producers in British Columbia experienced a healthy increase in revenues this year,despite a reduced harvest due to poor weather conditions."

• A)elastic demand for B.C.cherries
• B)elasticity of demand equal to one for B.C.cherries
• C)inelastic demand for B.C.cherries
• D)elasticity of demand equal to zero for B.C.cherries
• E)infinite elasticity of demand for B.C.cherries

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Definitions:

Distribution

The way in which something is shared out among a group or spread over an area, often referring to the statistical spread of values in a dataset.

Negatively Skewed

Describes a distribution of data where the tail is longer on the left side of the distribution's peak, indicating most values are high and few are low.

Tail

The far end portions of a distribution curve where the likelihood of values occurring becomes smaller; in skewed distributions, one tail may be longer than the other.

Negative Skew

A distribution that is skewed to the left, indicating that the tail on the left side is longer or fatter than the right side and the mean is typically less than the median.