If a 30 Percent Price Increase Generates a 20 Percent

question 297

Multiple Choice

If a 30 percent price increase generates a 20 percent decrease in quantity demanded,then demand is

• A) inelastic.
• B) elastic.
• C) unit elastic.
• D) perfectly elastic.
• E) perfectly inelastic.

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Definitions:

Sample

A group or set collected from a larger population for the purpose of statistical analysis, representing the larger group.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about a population parameter.

Statistical Analyses

The process of applying statistical methods to data in order to summarize, describe, and infer properties of the underlying distribution.