Legitimate Paths in Path Analysis Are Those That Do Not

question 30

Multiple Choice

Legitimate paths in path analysis are those that do not violate which of the three following rules?

• A) No path may pass through the same variable more than once.
• B) No path may go backward on an arrow after going forward on another arrow.
• C) No path may include more than one double-headed curved arrow.
• D) All three are correct.

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Definitions:

Law of Demand

A fundamental principle stating that, ceteris paribus, as the price of a good increases, the quantity demanded of that good decreases, and vice versa.

Product Price

The cost for which a single item or service is sold to consumers, which can consider production, marketing, and distribution expenses.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price.

Demand Schedule

a table that shows the quantity of a good or service that consumers are willing and able to purchase at various price points.