A Correlation of .50 Always Represents a Large Correlation

question 19

True/False

A correlation of .50 always represents a large correlation.

---

Definitions:

Elasticity

A measure in economics of how the quantity demanded or supplied of a good changes in response to changes in price or other factors.

Considered Elastic

A description for goods or services whose demand or supply is significantly responsive to changes in price.

Unit Elastic

Describes a demand or supply scenario where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Quantity Demanded

The aggregate quantity of a product or service that customers are ready and capable of buying at a certain price point.