Which of the Following Explains Why Local Supply Tends to Be

question 22

Multiple Choice

Which of the following explains why local supply tends to be more elastic than global supply?

• A) As price increases in a certain locale, it is often costly to transport more goods to that particular area, and hence supply is more elastic.
• B) Local suppliers are small in relation to the global market.
• C) The statement is false; local supply tends to be less elastic than global supply.
• D) As price increases in a certain locale, goods can be brought in from other areas, which is not possible on a global scale.

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Definitions:

Inferential Statistics

Set of statistical analyses used to draw inferences from a smaller group of data (sample) that then can be applied to a larger group (population).

Correlations

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship between variables.

Hypothesis Testing

A statistical method used to determine whether there is enough evidence in a sample of data to infer that a certain condition holds for the entire population.

Standard Deviation

A statistical measure that quantifies the dispersion or variability of a set of numerical data from its mean, indicating how spread out the data points are.