If a Theory's Prediction Is Tested and Rejected

question 50

Multiple Choice

If a theory's prediction is tested and rejected,

• A)it is rejected with certainty, because it is not possible to reject a hypothesis that is actually true.
• B)a new hypothesis is usually suggested and tested.
• C)the statistical tolerance of risk for accepting a false hypothesis should be increased.
• D)inquiry into the matter should cease.
• E)the original data and assumptions should be discarded.

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Definitions:

Less Elastic

Refers to a situation where a change in price leads to a relatively smaller change in the quantity demanded or supplied.

Less Elastic

Describes demand that is relatively insensitive to price changes, indicating consumers do not reduce purchase quantities significantly when prices increase.

Price Sensitive

Referring to the degree to which the demand for a product changes with a change in its price.

Cost Of Overpricing

The negative impacts, such as reduced sales and loss of market share, that can occur when a product is priced too high.