You Explain to Your Roommate Surya, Who Makes Beaded Headbands

question 163

Multiple Choice

You explain to your roommate Surya, who makes beaded headbands, about an economic theory which asserts that consumers will purchase more of a product at lower prices than they will at higher prices.She contends that the theory is incorrect because over the past two years she has lowered the price of her headbands and yet has seen a decrease in sales.How would you respond to Surya?

• A)Surya is right; she has evidence to back her claim. The theory must be erroneous.
• B)Surya is making the mistake of assuming that correlation implies causation.
• C)I will explain to her that she is making the error of reverse causality: it is the decrease in demand that has caused her to lower her prices.
• D)I will explain to her that there are some omitted variables that have contributed to a decrease in her sales such as changes in income.

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Definitions:

Empirically Supported Treatments

Therapeutic interventions that have been scientifically validated through rigorous research to be effective for treating specific psychological disorders.

Evidence-based Therapies

Therapeutic approaches that are supported by empirical research demonstrating their effectiveness.

Therapeutic Theories

A comprehensive term covering various frameworks and models that inform understanding, assessment, and intervention strategies in psychotherapy and counseling.

Evidence-based

A decision-making process that relies on the use of the best available, current, valid, and relevant evidence.