The Fact That Consumers Will Purchase More of a Good

question 388

Multiple Choice

The fact that consumers will purchase more of a good that has become relatively cheaper

• A) is called the nominal income effect.
• B) is called the substitution effect.
• C) leads to an upward sloping demand curve.
• D) leads to negative marginal utility.

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Definitions:

Assumption

A basic condition that is accepted as true without proof in order to proceed with a calculation, argument, or analysis.

Non-directional Alternative Hypothesis

An alternative hypothesis that does not specify the direction of the expected difference or relationship, only that one exists.

Null Hypothesis

A hypothesis that states there is no statistical significance between two variables being studied.

μ ≠ 5

A statistical notation indicating the population mean (μ) is not equal to 5.