In the Market for Good X-A Necessity Good Without Any

question 94

Multiple Choice

In the market for Good X-a necessity good without any good substitutes-the workers and capital in the industry can easily find work producing other goods. The burden of the tax is likely to fall:

• A) more heavily on buyers, given that demand is more inelastic than supply.
• B) evenly between buyers and sellers.
• C) more heavily on sellers, given that supply is more inelastic than demand.
• D) more heavily on buyers, given that demand is more elastic than supply.

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Definitions:

Correlation

The extent to which two factors vary together, and thus of how well either factor predicts the other. The correlation coefficient is the mathematical expression of the relationship, ranging from −1 to +1.

Dependent Variables

In an experiment, these are the variables that are tested and measured; they depend on the independent variable.

Random Samples

Random samples are a method of selecting a subset of individuals from a population in which each individual has an equal chance of being chosen, used to ensure generalizability of results.

Naturalistic Observation

Observing and recording behavior in naturally occurring situations without trying to manipulate and control the situation.