If a Tripling of Price Triples the Quantity of a Good

question 229

Multiple Choice

If a tripling of price triples the quantity of a good supplied, the price elasticity of supply is

• A)3
• B)300
• C)1
• D)-1
• E)-3

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Definitions:

Constant Variance

The condition in which the variance of the error terms in a regression model is the same across all levels of the independent variable.

Correlation Coefficient

A numerical index that determines both the magnitude and orientation of a linear correlation between two variables, which can vary between -1 and 1.

Variables

Elements, features, or factors that are likely to vary or change among subjects in a study or a population.

Spearman Rank

An assessment of rank correlation using a non-parametric approach that evaluates the extent to which a monotonic function can accurately describe the relationship between two variables.