Which of the Following May Be Safely Inferred When a Significant

question 208

Multiple Choice

Which of the following may be safely inferred when a significant negative correlation is found between variables x and y?

• A) y causes x
• B) x causes y
• C) as x increases, y decreases
• D) as x increases, y increases

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Definitions:

Shortage/Surplus

A market condition where the quantity demanded exceeds supply (shortage) or supply exceeds demand (surplus), affecting prices and availability.

Demand Equation

A mathematical expression that describes the relationship between the quantity demanded of a good and its price, along with other factors like income and price of related goods.

Supply Equation

A mathematical expression that describes the relationship between the quantity of a good supplied by producers and the good's price.

Price Floor

A legally imposed minimum price below which a good or service cannot be sold, typically above the equilibrium price, leading to surpluses.