Asked by
Ahmed Idrees
on Nov 26, 2024
Verified
Rosa works at a gelato shop and observes that the number of people buying gelato varies greatly from day to day. For a couple of weeks, she has recorded the number of people at the shop each day, as well as the daily temperature, and has observed a positive relationship between temperature and the number of customers. Based on her observations, Rosa should
A) conclude definitively that people buy more gelato when the temperature rises.
B) determine if there are other relevant factors and attempt to hold these constant before drawing conclusions.
C) continue to gather data on the number of visitors and daily temperatures, because eventually other relevant variables will not matter.
D) throw out the data if it does not show a perfect relationship between buying habits and temperature.
Positive Relationship
A Positive Relationship in economics refers to a situation where an increase in one variable leads to an increase in another variable.
Gelato
A rich, Italian-style ice cream known for its density and intense flavors.
Temperature
A measure of the average kinetic energy of the particles in a system, expressed in units such as Celsius (°C), Fahrenheit (°F), or Kelvin (K).
- Utilize the ceteris paribus principle to identify variables independently within economic evaluations.
- Understand the interpretation of production possibilities tables and curves.
Verified Answer
JP
Learning Objectives
- Utilize the ceteris paribus principle to identify variables independently within economic evaluations.
- Understand the interpretation of production possibilities tables and curves.