For M > P₂, the Demand Functions for Goods 1

question 49

Multiple Choice

For m > p₂, the demand functions for goods 1 and 2 are given by the equations, - 1 and , where m is income and p₁ and p₂ are prices. Let the horizontal axis represent the quantity of good 1. Let p₁ = 1 and p₂ = 2. Then for m > 2, the income offer curve is

• A) a vertical line.
• B) a horizontal line.
• C) a straight line with slope 2.
• D) a straight line with a slope of.
• E) None of the above.

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Definitions:

Experimenter's Manipulations

The deliberate changes or variations introduced by researchers in an experiment to investigate their effects on the outcome.

Extraneous Variable

Any variable that is not intentionally studied in the experiment which can affect the outcome of the research if not controlled.

Confounding Variable

An outside influence that changes the effect of a dependent and independent variable. This extraneous influence is used to influence the outcome of an experimental design.

Volunteer Bias

A shortcoming of findings derived from a sample of volunteers instead of a representative sample; the volunteers may differ from those who did not volunteer.