To Test the Theory That If the Price of Pens

question 104

Multiple Choice

To test the theory that if the price of pens rises, then pen purchases fall, an economist would

• A) analyze data on the price of pens and the price of pencils without holding other factors constant.
• B) investigate whether people purchase more pens when their income rises.
• C) analyze data on pen purchases linked to the price of pens, holding other factors constant.
• D) ask his or her friends if they would buy fewer pens when the price rises.

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