Which of the Following Statements About Demand Elasticity Is Correct

question 79

Multiple Choice

Which of the following statements about demand elasticity is correct?

• A)If demand is price-inelastic,an increase in price will reduce total expenditures.
• B)If demand is price-elastic,an increase in price will increase total expenditures.
• C)If demand is price-inelastic,an increase in price will increase total expenditures.
• D)If demand is price-elastic,an increase in price will leave total expenditure unchanged.

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Definitions:

Spurious

Describes something that is not genuine, authentic, or true; often used in statistics to refer to coincidental correlations between two variables that are actually caused by a third variable.

Control Variable

In experimental research, a variable that is kept constant to test the relative impact of an independent variable on a dependent variable.

Immigrant Status

The legal condition of a person who has come to live permanently in a country where they were not born, often impacting their rights and obligations.

Canadian-Born

Individuals who were born in Canada, regardless of their parents' nationality.