The Demand for Meals at a Local Applebee's Will Shift

question 108

Essay

The demand for meals at a local Applebee's will shift to the left if:
A.the Olive Garden offers a 10% discount coupon in the local newspaper.
B.the price of a meal at Applebee's rises.
C.local incomes increase and Applebee's is a normal good.
D.the price of gasoline falls in the local area.

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Definitions:

Independent Variable

The variable in an experiment that is manipulated to observe its effect on a dependent variable.

Internal Validity

The extent to which a study can demonstrate a cause-and-effect relationship between variables, free from external influence.

Random Assignment

A process used in experimental designs to assign subjects randomly to either the treatment group or the control group, ensuring that each participant has an equal chance of being placed in any group.

Equivalent

Equal in value, function, or meaning.