-Refer to Exhibit 3-5

question 146

Multiple Choice

-Refer to Exhibit 3-5.In the market shown,a rightward shift in supply from S₁ to S₂ could have been caused by

• A) a decline in the number of buyers in the market.
• B) a decline in the price of a substitute good.
• C) a decrease in income (assuming the good is a normal good).
• D) the granting of a subsidy to the producer.
• E) none of the above

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Definitions:

Internal Validity

The extent to which a study can prove that a cause-and-effect relationship exists between the tested variables, excluding the influence of external factors.

Nonmonotonic Relationship

A relationship between two variables where the direction of the effect changes over the range of the variable, meaning it can increase then decrease, or vice-versa.

Independent Variables

The factors that are manipulated or varied by researchers in an experiment to determine their effect on the dependent variable.

Dependent Variable

In experimental research, the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.