If a Demand Curve Is the Line Defined by P

question 32

Multiple Choice

If a demand curve is the line defined by P = $5,the absolute value of the price elasticity of demand is:

• A)5.
• B)0.2.
• C)0.
• D)infinity.

---

Definitions:

Significance Level

The probability of rejecting the null hypothesis when it is actually true, often denoted by alpha.

ANOVA Table

A table that displays the output of an Analysis of Variance, which shows statistical information such as sums of squares, degrees of freedom, mean squares, and F-statistics.

Mean Squares

The average of the squares of the deviations or differences from the mean, often used in variance analysis.

Sum of Squares

A statistical measure used in regression analysis and ANOVA; it quantifies the total variance in the data by summing squared deviations from the mean.