Suppose There Is a Permanent Shift of Consumer Preferences Away

question 52

Multiple Choice

Suppose there is a permanent shift of consumer preferences away from pretzels and toward potato chips. The most likely result would be

• A) in the short run, economic losses in the potato chip market.
• B) in the long run, a fall in the supply of potato chips.
• C) in the short run, a rise in the price of pretzels.
• D) short-run profits in the potato chip market increase.

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Definitions:

Null Hypotheses

A hypothesis that there is no significant difference or effect and any observed difference is due to chance.

Research Hypotheses

Predictive assertions by scientists about the connection between multiple variables.

F Statistic

A statistic used to determine the ratio of two variances to test the hypothesis of equal variances.

Pairwise Comparisons

Statistical analyses involving the comparison of all possible pairs in a group to determine if significant differences exist between them.