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Define construct validity and criterion validity. Provide an example of how we can develop questions or procedures that would address each type of validity. Then highlight at least one disadvantage and advantage for each type of validity. Also provide a brief statement as to how these types of validity are related.
Demand
The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.
Income
The amount of money received by an individual or group over a certain period, often derived from work, investments, or business activities.
Utility Function
A mathematical formula that represents a consumer's preference ranking for various bundles of goods.
Budget Line
A graphical representation that shows all the possible combinations of two goods or services that can be purchased with a given budget, keeping the price of both goods constant.
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