The Elasticity of Demand for Gasoline Has Been Estimated to Be

Multiple Choice

The elasticity of demand for gasoline has been estimated to be −2.0,and the standard error is 0.25.The t-statistic for the estimated elasticity of demand for gasoline is:

A) −8, indicating a statistically significant elasticity estimate at the 95 percent confidence level.
B) −0.5, indicating a statistically insignificant elasticity estimate at the 95 percent confidence level.
C) 8, indicating a statistically insignificant elasticity estimate at the 95 percent confidence level.
D) 0.5, indicating a statistically significant elasticity estimate at the 95 percent confidence level.