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Investigators were interested in communication about sex and related topics between
parents and 12-14 year olds. The investigators asked parents and students whether or
not they had communicated with their child/parent about topics such as pregnancy,
how to say "no," and methods of contraception. A scatter plot of their data is
presented below. Each point represents one topic listed by the investigators. For
example, 72.4% of parents and 57.6% of adolescents said the parents had discussed
childbirth. This would be recorded as the point (57.6, 72.4). (a) On the graph above, sketch the line y x, representing a line of "perfect
agreement" between the parents and adolescents.
(b) What is a possible explanation of the placement of the points in the scatter plot
relative to the line you sketched in part (a)?
Nash Equilibrium
A situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen.
Price Effect
The impact that a change in the price of a good or service has on consumer demand for that good or service.
Oligopoly
A market structure characterized by a small number of firms that control the majority of the market share, leading to limited competition.
Prisoner's Dilemma
A scenario in game theory in which two individuals acting in their own self-interest do not produce the optimal outcome.
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