What Are Simple Effects Tests and When Are They Used

question 27

Essay

What are simple effects tests and when are they used?

---

Definitions:

Budget Line

A visual depiction showing every potential pairing of two products that a specific budget can buy at predetermined prices.

Horizontal Axis

The x-axis in a graph, typically representing the independent variable or the quantity of goods in economic graphs.

Vertical Axis

In a graph or chart, the y-axis along which numerical data, typically representing a variable being measured, is plotted.

Budget Line

A graphical representation of all possible combinations of two goods which a consumer can purchase with a given budget, at fixed prices for those goods.