Assume That Pizza and Hamburgers Are the Only Food Items

question 35

Multiple Choice

Assume that pizza and hamburgers are the only food items available to consumers. If the price of pizza increases, other factors constant, then which of the following will definitely happen?

• A) Total revenues received by pizza sellers will increase.
• B) Total revenues received by pizza sellers will decrease.
• C) Total revenues received by hamburger sellers will increase.
• D) Total revenues received by hamburger sellers will decrease.

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Definitions:

Significance Level

The threshold at which the results of statistical analysis are considered to indicate a statistically significant difference from the null hypothesis.

Hypotheses Testing

A method of statistical inference used to decide whether there is enough evidence in a sample of data to support a particular belief or hypothesis about a population parameter.

r Values

Statistical measures representing correlation coefficients that indicate the strength and direction of a linear relationship between two variables.

Spearman Rank-Correlation

A nonparametric measure of rank correlation that assesses how well the relationship between two variables can be described by a monotonic function.