Why Is It Important to Understand the Different Types of Measurement

question 15

Multiple Choice

Why is it important to understand the different types of measurement?

• A) Because the measurement level of a variable influences what can be done with it quantitatively
• B) Because some variables are better than others
• C) Because knowing the extent of variation in each variable is important
• D) Because researchers should only use certain types of variables

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Definitions:

Demand Increase

A situation where the quantity of a product or service that consumers are willing and able to buy at a given price rises.

Price Elasticity

The sensitivity measure of demand for a good relative to its price changes.

Demand Curve

It illustrates the relationship between the price of a good or service and the quantity demanded for a given period, assuming all other factors are constant (ceteris paribus).

Midpoint Method

A technique used in economics to calculate the elasticity of a variable, which averages the starting and ending values to minimize the bias in the elasticities calculated at different points.