The Elasticity of Demand for Gasoline Has Been Estimated to Be

question 27

Multiple Choice

The elasticity of demand for gasoline has been estimated to be −2.0,and the standard error is 0.25.The t-statistic for the estimated elasticity of demand for gasoline is:

• A) −8, indicating a statistically significant elasticity estimate at the 95 percent confidence level.
• B) −0.5, indicating a statistically insignificant elasticity estimate at the 95 percent confidence level.
• C) 8, indicating a statistically insignificant elasticity estimate at the 95 percent confidence level.
• D) 0.5, indicating a statistically significant elasticity estimate at the 95 percent confidence level.

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Definitions:

Carboxylic Acid

Organic compounds characterized by a carboxyl group, commonly involved in acid-base reactions and synthesis.

Diazomethane

A highly reactive organic compound with the formula CH2N2, used especially in chemical synthesis as a methylating agent.

Mechanism

A detailed sequence of steps explaining how reactants are transformed into products in a chemical reaction.

PhCHO

Refers to the chemical compound benzaldehyde, which consists of a benzene ring bonded to an aldehyde group.