The Price and Quantity Demanded of a Particular Smartphone App

question 30

Multiple Choice

The price and quantity demanded of a particular smartphone app are shown in the table below.

$\begin{array} { | l | c | c | c | c | c | c | c | c | } \hline \begin{array} { l } \text { Price } \\\text { (\$ per download) }\end{array} & \$ 0 & \$ 1 & \$ 2 & \$ 3 & \$ 4 & \$ 5 & \$ 6 & \$ 7 \\\hline \begin{array} { l } \text { Quantity Demanded } \\\text { (millions of downloads) }\end{array} & 7 & 6 & 5 & 4 & 3 & 2 & 1&0 \\\hline\end{array}$
-Between prices $3 and $4,the numerical value of the price elasticity of demand is:

• A)0.08
• B)7.0
• C)0.17
• D)13.0
• E)1.0

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Definitions:

Null Hypothesis

The null hypothesis is a type of hypothesis used in statistics that suggests there is no statistical significance in a set of given observations.

Observed Counts

The actual numbers counted in each category or group in a study or experiment.

Distribution

In statistics, it refers to the way in which data points are spread or dispersed across a range of values.

T Procedure

The T procedure, often referred to as the T-test, is a statistical test used to determine if there is a significant difference between the means of two groups which may be related in certain features.