If the Price Elasticity of Demand Is -1

question 196

Multiple Choice

If the price elasticity of demand is -1.2, economists would say the demand is:

• A) elastic.
• B) inelastic.
• C) unit elastic.
• D) unelastic.

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Definitions:

Stepwise Regression

A method of regression analysis in which the selection of predictive variables is carried out by an automatic procedure.

Backward Elimination

A stepwise regression technique used in statistical analysis to select significant variables by starting with all variables and successively removing the least significant ones.

Forward Selection

A stepwise regression method where variables are added one by one to the model based on their statistical significance.

Stepwise Regression

A statistical method of building a model by adding or removing predictors based on their statistical significance.