You Can Spend $5 for Lunch and You Would Like

question 39

Multiple Choice

You can spend $5 for lunch and you would like to have two double cheeseburgers. When you get to the restaurant, you find out the price for double cheeseburger has increased from $2.50 to $2.99. You decide to have just one double cheeseburger for lunch. This is best described as a(n) :

• A)substitution effect.
• B)income effect.
• C)buyer's reservation price effect.
• D)seller's reservation price effect.

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Definitions:

Internal Validity

The extent to which a study can demonstrate a cause-and-effect relationship between variables, without influence from external factors.

External Validity

The degree to which the outcomes of research can be applied to different contexts and populations beyond the experimental environment.

Reversal Design

A single-subject experimental design in which behavior is measured to provide a baseline (A), then again after the treatment has been applied (B), then again after the conditions during baseline have been reintroduced (A), and then once again after the treatment is reintroduced (B). Also known as ABAB design.

Single-Subject Experiments

Research studies that focus on the response of a single subject to experimental treatments over time, allowing detailed observation of behavior changes.