The Price Elasticity of Demand Measures

question 182

Multiple Choice

The price elasticity of demand measures

• A) changes in demand.
• B) how responsive market prices are to a change in demand.
• C) how responsive consumers are to a change in price.
• D) how responsive consumers are to a change in income.

---

Definitions:

Statistical Risk

Statistical risk quantifies the likelihood of a negative event occurring. It is often used in the context of financial markets, health studies, and other areas requiring risk assessment based on numerical data.

Variability

The extent to which data points in a statistical distribution or dataset differ from each other and from their mean.

Confidence Level

A statistical measure that indicates the degree of certainty or trust in the results obtained from a sample as representative of a larger population.

Inference

The process of drawing conclusions about a population based on a sample.