Demand Is Price Inelastic If

question 81

Multiple Choice

Demand is price inelastic if:

• A) the price of the good responds slightly to a quantity change.
• B) the demand curve shifts very little when a demand shifter changes.
• C) the percentage change in quantity demanded is relatively small in response to a relatively large percentage change in price.
• D) all of the above are true.

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Definitions:

Chi-Squared Distribution

A statistical distribution that represents the distribution of the sum of the squares of k independent standard normal random variables.

Skewed to the Right

A description of a distribution of data where the right tail (higher values) is longer than the left tail, indicating a concentration of lower values.

Critical Region

The critical region is a set of values for which the null hypothesis is rejected in hypothesis testing; it specifies the threshold at which the observed results are deemed statistically significant.

Multinomial Distribution

A statistical distribution that generalizes the binomial distribution for variables that can take on more than two categories.