If Cigars and Cigarettes Are Substitute Goods, an Increase in the Price

question 492

Multiple Choice

If cigars and cigarettes are substitute goods, an increase in the price of cigars would result in

• A) an increase in the demand for cigarettes.
• B) a decrease in the price of cigarettes.
• C) a decrease in the demand for cigarettes.
• D) a decrease in the demand for cigars.

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Definitions:

Path Analysis

A statistical technique used to describe the directed dependencies among a set of variables, often visualized through a diagram.

SEM

Stands for Standard Error of the Mean, a statistical measurement that estimates the accuracy with which a sample mean represents the population mean.

Factor Analysis

A statistical technique designed to discover the fundamental factors or elements that account for the observed correlation patterns among a collection of variables.

Eta Analysis

A statistical method for measuring the association between qualitative and quantitative variables.