Two Events Are Said to Be Independent When

question 33

Multiple Choice

Two events are said to be independent when

• A)the probability of one event is influenced by the occurrence of the other event.
• B)you do not have knowledge about the occurrence of either event.
• C)the probability of one event is determined by the occurrence of the other event.
• D)the probability of one event is not influenced by the occurrence of the other event.

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Definitions:

Indifference Curve

A graph representing combinations of goods among which a consumer is indifferent, showing trade-offs between two goods.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget and prices.

Substitution Effect

The substitution effect describes the change in consumption patterns due to a change in relative prices, leading consumers to substitute a product for a cheaper alternative.

Income Effect

The adjustment in demand for goods and services triggered by a change in consumers' discretionary income.