Using the Utility-Optimizing Model, Which of the Following Would Induce

question 356

Multiple Choice

Using the utility-optimizing model, which of the following would induce a consumer to increase consumption of good x, a normal good?

• A) An increase in the marginal utility of x
• B) A decrease in the total utility of y
• C) An increase in the marginal utility of good y
• D) A decrease in income

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Definitions:

Inferential Statistics

This is a branch of statistics that makes predictions or inferences about a population based on a sample of data taken from that population.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed difference is due to sampling or experimental error.

Research Hypothesis

A specific, testable prediction about the relationship between two or more variables that a study aims to prove or disprove.

Descriptive Statistics

Statistical measures that describe the results of a study; descriptive statistics include measures of central tendency (e.g., mean), variability (e.g., standard deviation), and correlation (e.g., Pearson r).