Which of the Following Is Not True Regarding a Price

question 220

Multiple Choice

Which of the following is not true regarding a price elastic demand curve?

• A) Total revenue increases when price falls.
• B) The absolute value of price elasticity is a fraction less than 1.
• C) The absolute value of price elasticity is greater than 1.
• D) The percentage changes in quantity exceed the percentage changes in price for any small change in price.

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Definitions:

Population Parameter

A value that accurately represents a particular characteristic of an entire population.

Alternative Hypothesis

A statistical hypothesis that contradicts the null hypothesis, indicating the presence of an effect, difference, or relationship.

Research Question

A precisely formulated question that a study aims to answer, guiding the direction of the research.

P-value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of observing their results by chance.