If the Price of Coffee Cups Falls and the Consumer

question 28

Multiple Choice

If the price of coffee cups falls and the consumer decides to buy more coffee cups solely because they are less expensive,this describes the:

• A)income effect.
• B)substitution effect.
• C)consumer surplus effect.
• D)marginal-maximizing rule.

Differentiate between independent and dependent (matched pairs) samples.

Explain the rationale behind paired-difference experiments and their advantages.

Apply appropriate statistical methods to test hypotheses about means and variances in practical situations.

Calculate and interpret sample variances and confidence intervals for population variances.

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Definitions:

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