What Does a Positive Value for Price Elasticity Indicate If

question 99

Multiple Choice

What does a positive value for price elasticity indicate if y represents the quantity demanded of a particular good and x is its unit price in a log-log regression model?

• A) As price increases, the expected sales decreases.
• B) As price decreases, the expected sales increases.
• C) As price increases, the expected sales increases.
• D) As price decreases, the expected sales remain the same.

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Definitions:

Simplify

To make something less complex or less complicated, often by reducing it to its basic elements.

Simplify

To make something less complicated or easier to understand, often by reducing complexity.

Simplify

The process of making something easier to understand or less complex.

Imaginary Numbers

Complex numbers that can be written as a real number multiplied by the imaginary unit i, where i is the square root of -1, used in advanced mathematics.