We Know That Products a and B Are Related Goods

question 17

Multiple Choice

We know that products A and B are related goods, because when the price of A increases

• A) the demand curve for B will shift to the right, because A and B are complementary goods.
• B) the quantity of B demanded will shift along its demand curve, because A and B are complementary goods.
• C) the demand curve for B will shift to the left, because A and B are complementary goods.
• D) the demand curve for B will remain unchanged because A and B are substitute goods.

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Definitions:

Observed Frequencies

The actual number of occurrences of each category in statistical data.

Expected Frequencies

The anticipated counts in each category of a contingency table under the assumption that the null hypothesis is true, calculated from the proportions in the total sample.

Chi-square Statistic

A statistical measure used to assess the differences between observed and expected frequencies in one or more categories.

Expected Frequencies

In statistics, these are the counts predicted by a hypothesis test for categories in a contingency table, based on the distribution assumptions of the test.