If Demand Is Elastic,then

question 51

Multiple Choice

If demand is elastic,then:

• A) Quantity demanded is not very responsive to changes in price.
• B) Quantity demanded is very responsive to changes in price.
• C) Consumer spending does not respond to changes in income.
• D) Total revenue falls in response to a price decrease.

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Definitions:

Pearson Correlation

A measure of linear correlation between two variables, ranging from -1 to 1, where 1 means a perfect positive linear relationship, -1 means a perfect negative linear relationship, and 0 indicates no linear relationship.

Non-Directional

Refers to a hypothesis that predicts a change or difference but does not specify the direction of the change.

Sample Size

The number of observations or data points collected from a subset of a larger population for the purpose of statistical analysis.

Pearson Correlation

A measure of the linear correlation between two variables, showing how closely the data fit to a line.