Suppose That Tacos and Pizza Are Substitutes, and That Soda

question 64

Multiple Choice

Suppose that tacos and pizza are substitutes, and that soda and pizza are complements. We would expect an increase in the price of pizza to

• A) reduce the demand for tacos and increase the demand for soda.
• B) reduce the demand for soda and increase the demand for tacos.
• C) increase the demand for both soda and tacos.
• D) reduce the demand for both soda and tacos.

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Definitions:

Experimental Hypothesis

An assumption or prediction about the relationship between two variables or the outcome of an experiment designed to be tested through research.

Control Conditions

Conditions in an experiment that are kept constant to accurately test the impact of the experimental factor.

Experimental Procedures

Systematic processes undertaken to discover new knowledge or to test hypotheses by manipulating variables and observing the outcomes.

Correlation Causation

Refers to the logical error of assuming that a correlation between two variables implies that one causes the other.