Prices Become Higher When a Unique and Highly Desirable Item

question 57

Multiple Choice

Prices become higher when a unique and highly desirable item is auctioned ________.

• A) because the supply and demand are equal
• B) because the demand is higher than the supply
• C) because the supply is higher than the demand
• D) because the supply and demand are kept unknown
• E) because the demand is lower than the supply

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Definitions:

Theory

A system of ideas intended to explain something, especially one based on general principles independent of the thing to be explained.

Nondirectional Research Hypothesis

A hypothesis that predicts a relationship or effect but does not specify the direction of the relationship.

Directional Research Hypothesis

A hypothesis that indicates the anticipated direction of the difference or relationship among variables.

Null Hypothesis

A type of hypothesis used in statistics that proposes that no statistical significance exists in a set of given observations.