A Study of Consumer Behavior Finds a Strong Positive Association

question 11

Multiple Choice

A study of consumer behavior finds a strong positive association between sales of ice cream and sales of soda.Describe three different possible cause-and-effect relationships that might be present.

• A)Perhaps sales of ice cream cause higher sales of soda,sales of soda cause higher sales of ice cream,or both could be caused by a lurking variable such as the outdoor temperature.
• B)There is only one cause-and-effect relationship: sales of soda cause higher sales of ice cream.
• C)There are no possible cause-and-effect relationship ,because there should be an arithmetic mistake.
• D)There is only one cause-and-effect relationship: sales of ice cream cause higher sales of soda.
• E)There are only two cause-and-effect relationships: sales of ice cream cause higher sales of soda,or sales of soda cause higher sales of ice cream.

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Definitions:

Clayton Act

A U.S. antitrust law aimed at promoting competition among businesses by prohibiting certain practices that restrict commerce.

Tying Contracts

Agreements where the sale of one product (the tying product) is conditioned on the purchase of another (the tied product).

Supply Discrimination

Describes a situation where suppliers treat certain customers or buyer groups differently, often unfairly.

Antitrust Laws

Legislation intended to promote competition and regulate anti-competitive behavior among businesses.