The Price of Pizza Falls Relative to the Price of Spaghetti,so

question 22

Multiple Choice

The price of pizza falls relative to the price of spaghetti,so people buy more pizza instead of spaghetti.This is an example of responding to:

• A) marginal science.
• B) incentives.
• C) disincentives.
• D) sunk benefit.

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Definitions:

Prior Probability

The likelihood of an event occurring before new evidence is taken into account.

Conditional Probability

The estimated probability of an event's occurrence when it is already known that another event has preceded it.

Thomas Bayes

An 18th-century British statistician and clergyman known for formulating the Bayes' Theorem, which describes the probability of an event based on prior knowledge.

Likelihood Probabilities

Quantifies the chance of a particular set of outcomes under specific model parameters, often used in statistical inference.