Two Independent Variables Are Confounded When

question 38

Multiple Choice

Two independent variables are confounded when

• A) they both vary in the study
• B) one varies and one does not
• C) their separate effects cannot be tested
• D) None of these are true

Differentiate between goods with elastic and inelastic demand based on characteristics such as necessity, luxury, and availability of substitutes.

Apply the midpoint method to calculate various forms of elasticity, including price elasticity of demand, income elasticity of demand, and cross price elasticity.

Identify factors affecting the price elasticity of demand for a good.

Estimate the effects of price changes on demand using elasticity concepts.