A Parallel Shift in the Consumer's Budget Line Always Indicates

question 83

Multiple Choice

A parallel shift in the consumer's budget line always indicates a change in

• A) at least one money price.
• B) both prices.
• C) money income.
• D) tastes.
• E) real income.

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Definitions:

Significance Level

The threshold below which a p-value indicates that the observed data is unlikely to have occurred by chance, leading to rejection of the null hypothesis.

Null Hypothesis

A statement in statistical analysis that proposes there is no significant effect or difference between certain variables or groups.

Statistical Test

A method of making decisions or inferences about population parameters based on sample data, often involving a comparison between an observed test statistic and a critical value.

Power

The probability that a statistical test will correctly reject a false null hypothesis; it measures a test's sensitivity to detect an effect if there is one.