Suppose the Price of a Product Rises and the Total

question 310

Multiple Choice

Suppose the price of a product rises and the total revenue of sellers increases.

• A)It can be concluded that the demand for the product is elastic.
• B)It can be concluded that the supply of the product is elastic.
• C)It can be concluded that the supply of the product is inelastic.
• D)No conclusion can be reached with respect to the elasticity of supply.

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Definitions:

Familywise Error

The overall likelihood that a Type I error (incorrect rejection of a true null hypothesis) will occur across a set of related hypotheses.

Type I Error

Error that occurs when the null hypothesis is true but the decision is made to reject the null hypothesis.

Probability

Likelihood of occurrence of a particular outcome of an event given all possible outcomes.

Familywise Error

The probability of making one or more false discoveries, or type I errors, when performing multiple hypotheses tests.