If an Increase in the Price of Oil by 10

question 13

Multiple Choice

If an increase in the price of oil by 10 percent would cause the quantity demanded for oil to fall by 5 percent, the elasticity of demand for oil in absolute terms is:

• A) 10.
• B) 5.
• C) 2.
• D) 0.5.

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Definitions:

Coefficient of Variation

A normalized measure of dispersion of a probability distribution, calculated as the ratio of the standard deviation to the mean, usually expressed as a percentage.

Variability

The extent to which data points in a dataset differ from each other and from the mean of the dataset.

Standard Deviation

The statistical measurement that calculates the spread or dispersion of a dataset relative to its mean, providing insight into the concentration of data points.

Observations

The act of recording data or information gathered from scientific or statistical study.