If 100 Shirts Are Sold When the Unit Price Is

question 43

Multiple Choice

If 100 shirts are sold when the unit price is $10, while 75 shirts are sold when the unit price is $15, one can conclude that in this price range,

• A) demand for the shirts is elastic.
• B) demand for the shirts is inelastic.
• C) demand for the shirts has shifted to the right.
• D) consumers are quite sensitive to changes in the price of the shirt.

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Definitions:

Regression Slope Coefficient

A measure in regression analysis that quantifies the change in the dependent variable for a one unit change in an independent variable.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a certain level of confidence.

Y-Intercept

The point at which a line crosses the y-axis of a graph, representing the value of the dependent variable when all independent variables are zero.

Torque

A rotational force applied to an object, calculated as the product of the force and the distance from the point of application to the axis of rotation.