If the Slope of the Demand Curve Is -1

question 48

Multiple Choice

If the slope of the demand curve is -1.4,price is $5 and quantity demanded is 13 units,the price elasticity of demand is:

• A)0.27.
• B)0.38.
• C)1.4.
• D)1.8.

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Definitions:

Control Group

In an experiment, the group that does not receive the treatment or intervention being tested, used as a baseline to compare the effects of the treatment.

Third Variable Problem

A challenge in research where an unmeasured, external factor causes the correlation between two variables, complicating causal interpretations.

Directionality Problem

In research, the issue of not knowing whether variable A causes variable B or vice versa.

Correlational Studies

Correlational studies are research methods that examine the relationship between two or more variables to determine if a statistically significant association exists, without inferring cause and effect.