An Increase in the Relative Price of a Good Cannot

question 438

Multiple Choice

An increase in the relative price of a good cannot be caused by

• A) an increase in the nominal price of the good that is greater than the increase in the nominal price of the other good.
• B) a decrease in the nominal price of the good that is less than the decrease in the nominal price of the other good.
• C) a decrease in the nominal price of the other good while the price of the good itself remains constant.
• D) an increase in the nominal price of the other good while the price of the good itself remains constant.

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Definitions:

Population Parameters

Characteristics that summarize or describe aspects of a population, such as mean, variance, or median.

N - 1 Adjustment

A statistical method used to correct the bias in the variance estimate of a sample.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values.

Scores

Quantitative values assigned to individuals or items for the purpose of evaluation or measurement.