If the Demand Curve Is a Straight Line and Has

question 37

Multiple Choice

If the demand curve is a straight line and has the normal negative slope,then as quantity demanded increases,demand

• A)becomes more elastic
• B)becomes more inelastic
• C)is unitary elastic
• D)rises and then falls
• E)is an inverse function of supply

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Definitions:

Alternative Hypothesis

The hypothesis that proposes a specific relationship between variables, contrary to the null hypothesis.

Directional Hypothesis

A hypothesis that specifies the direction of the expected difference or relationship between two variables.

Null Hypothesis

A statement in statistics that there is no significant difference or effect, and any observed difference is due to sampling or experimental error.

Alternative Hypothesis

A statistical hypothesis that suggests a difference or effect, opposite to the null hypothesis.