You Explain to Your Friend Haslina,who Runs a Catering Service

question 193

Multiple Choice

You explain to your friend Haslina,who runs a catering service called "Meals in a Zip," about an economic theory which asserts that consumers will purchase less of a product at higher prices than they will at lower prices.She contends that the theory is incorrect because over the past two years she has raised the price of her catered meals and yet has seen a brisk increase in sales.How would you respond to Haslina?

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

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Definitions:

Participant Observation

A method whereby the sociologist becomes both a participant in the group being studied and a scientific observer of the group.

Anti-Semitism

The belief or behavior that defines Jewish people as inferior and that targets them for stereotyping, mistreatment, and acts of hatred.

Political Opponents

Individuals or groups who oppose each other in political contexts, often with differing ideologies or objectives.

Shared Sense

A collective or mutual understanding or perception among a group of people about particular concepts, situations, or values.