Suppose You Manage a Corner Grocery Store

question 149

Multiple Choice

Suppose you manage a corner grocery store.If peanut butter is an inferior good,what do you suppose would happen to the price and quantity sold of peanut butter as incomes fell during a recession?

• A)The price would increase and the quantity would decrease.
• B)The price and quantity would both increase.
• C)The price and quantity would both decrease.
• D)The price would decrease and the quantity would increase.

---

Definitions:

Acceptance Sampling

A statistical quality control method used to decide whether to accept or reject a lot of products by inspecting a random sample rather than the entire batch.

Capable

The quality of being able to achieve a specified task or outcome efficiently and effectively.

Consumer's Risk

The probability of accepting a defective product or service because the inspection or test fails to detect the flaw.

Hypothesis Testing

A statistical method that uses sample data to evaluate a hypothesis about the characteristics of a population.