If the Elasticity of Supply of a Good Was 2

question 106

Multiple Choice

If the elasticity of supply of a good was 2, how much would the price have to increase to lead to an increase in output of 6 percent?

• A)​3 percent.
• B)​4 percent.
• C)​8 percent.
• D)​12 percent.

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Definitions:

Value Of T

The value of t, often found in t-tests, quantifies the difference between an observed sample mean and its hypothesized population mean value, measured in terms of standard errors.

Degrees For Freedom

The number of independent values in a statistical calculation that can vary without violating any given constraints.

T-Distribution

A probability distribution that is symmetric and bell-shaped, used particularly for small sample sizes or unknown population standard deviations; synonymous with Student T Distribution but demands a new definition.

Sample Mean

The average of all numerical values in a sample subset of a population, used in statistics to estimate the population mean.