When the Price of a Good Falls and Customers Tend

question 45

Multiple Choice

When the price of a good falls and customers tend to buy more of it, and more of other goods, economists call this the__________ effect.

• A) ceteris paribus
• B) substitution
• C) diminishing marginal utility
• D) income

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Definitions:

Independent Samples

Two or more sets of data that are collected independently of each other, not affecting one another.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true value of a population parameter with a certain level of confidence.

Population Proportions

The ratio of members in a population that have a particular attribute over the total number of members in the population.

Point Estimate

A single value or statistic that is used to estimate the value of a population parameter.