If the Price of a Textbook Rises and Then Students

question 66

Multiple Choice

If the price of a textbook rises and then students purchase fewer textbooks, an economic model can show a cause-and-effect relationship only if which of the following conditions holds:

• A) students' incomes fall.
• B) tuition decreases.
• C) the number of students increases.
• D) everything else is constant.

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Definitions:

Logical Fallacy

An error in reasoning that renders an argument invalid or undermines the logic of a discussion.

Analogy

A comparison between an unfamiliar idea, thing, or situation and something the audience already understands.

401(K) Retirement Plans

A tax-advantaged retirement savings plan offered by many employers in the United States, allowing employees to save a portion of their paycheck before taxes.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees over a specific period.