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P-hacking, Reproducibility & the Nobel Prize: Guido Imbens (#269)

Into the Impossible With Brian Keating

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The Price Elasticity Is the Derivative of Quantity, Law, Quantity Versus Law, and So It Makes Sense

The price elasticity is the derivative of quantity and law. It means, anti correlated, high quality quantity. And so if it's between zero and minus one, it actually means that you would sell,. Your revenue would go up if you increase prices. The raw correlation between prices and quantities here is actually pretty much zero. So it really shows that this is making some sense.

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