You Have Found Data That Indicates That the Income Elasticity

question 86

Multiple Choice

You have found data that indicates that the income elasticity of demand for generic (unbranded) shampoo is -0.7.You conclude that generic shampoo:

• A)is a normal good.
• B)has inelastic demand.
• C)is not in equilibrium.
• D)is an inferior good.

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Definitions:

Intercorrelations

Statistical measures that indicate the strength and direction of relationships between multiple variables.

Factor Analysis Validity

Factor Analysis Validity involves using factor analysis, a statistical method, to identify the underlying structure of psychological constructs, thus helping to validate the content of a test.

Convergent Validity

A method of demonstrating construct validity by correlating a test with some other well-known measure or instrument.

GREs

The Graduate Record Examinations, a standardized test that is an admissions requirement for many graduate schools in the United States and other countries.