If the Price Elasticity of Demand for Computers Is Greater

question 145

Multiple Choice

If the price elasticity of demand for computers is greater than 1, then an increase in computer prices will

• A)lower total revenue.
• B)raise total revenue.
• C)not change total revenue.
• D)either raise or lower total revenue, depending on the starting price.
• E)lead to a higher percentage change in total revenue than the percentage change in price.

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Definitions:

Point-intercept Method

A technique in ecology used for estimating the abundance or cover of plant species by recording their presence at points along a transect line.

Strong Linear Relationship

A statistical term indicating a direct proportional relationship between two variables, where changes in one variable directly correspond to changes in the other.

Negative Linear Relationship

A type of correlation where one variable increases as the other decreases in a consistent, straight-line manner.

Positive Linear Relationship

A relationship in which one variable increases as the other variable also increases, represented by a straight line with a positive slope.