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Dr. Hoff is curious as to whether children in a kindergarten classroom will be friendlier after talking about friendship. Immediately before and after the discussion, she has several undergraduate research assistants code the "friendliness" of a group of kindergarteners. Which of the following threats should Dr. Hoff be most concerned about?
Income Elasticity
measures how much the quantity demanded of a good changes in response to a change in consumers' income.
Midpoint Method
A technique used in economics to calculate the percentage change between two values, averaging the initial and final values to estimate elasticity.
Normal Good
A good for which demand increases as the income of the consumer increases, holding all else constant.
Production Capacity
The maximum output that a business can produce in a given period under normal conditions.
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