What Does a Positive Value for Price Elasticity Indicate If

question 99

Multiple Choice

What does a positive value for price elasticity indicate if y represents the quantity demanded of a particular good and x is its unit price in a log-log regression model?

• A) As price increases, the expected sales decreases.
• B) As price decreases, the expected sales increases.
• C) As price increases, the expected sales increases.
• D) As price decreases, the expected sales remain the same.

---

Definitions:

Stock Boys

Individuals typically employed in retail establishments to stock merchandise and organize inventory.

Monthly Payroll

The total amount of wages paid by a business to its employees in one month.

Accounting Firm

A business that provides services related to the processing, measurement, and communication of financial information about economic entities.

Salaries

Payments made to employees for their services, typically expressed as an annual sum and paid at regular intervals.