How Does a Positive Network Effect Influence the Private and Social

question 164

Multiple Choice

How does a positive network effect influence the private and social demand curves for a network good?

• A) Private demand shifts left, and social demand shifts right.
• B) Private demand shifts right, and social demand shifts left.
• C) Both private demand and social demand shift left.
• D) Both private demand and social demand shift right.

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Definitions:

Independent Variable

The factor in a study that is deliberately changed by the investigator to see how it influences the outcome variable.

Statistically Significant Interaction

An interaction between variables that leads to a difference in outcomes which is unlikely to be due to chance alone, according to statistical analysis.

Means

Statistical averages that are calculated by adding up all the numbers in a set and then dividing by the count of those numbers.

Authorship

The credit given to individuals for their contribution to the creation of a work, such as a book, article, or study.