An Increase in the Demand for Computers and a Decrease

question 217

Multiple Choice

An increase in the demand for computers and a decrease in the number of sellers of computers will definitely __________.

• A) increase the price of a computer
• B) not change the price of a computer and increase the number of computers bought
• C) increase the price of a computer and the number of computers bought
• D) increase the number of computers bought

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Definitions:

Omitted Variable

An unobserved variable that, through its influence on other variables, creates the erroneous appearance of a direct causal relationship among those variables.

External Temperature

The temperature outside of a controlled environment, often impacting various activities and processes.

Reverse Causality

A situation where the cause and effect in a relationship are the opposite of what is commonly perceived or proposed.

Time-Series

A sequence of numerical data points in successive order, usually occurring at uniform intervals, used to analyze trends over time.