Question

Which of the following represents causality rather than association? a.In years that fashion dictates wider lapels on men's jackets, the stock market grows by at least 5 percent. b.Interest rates are higher in years ending with a 1 or a 6. c.Unemployment falls when the AFC champion wins the Super Bowl. d.Quantity demanded goes up when price falls because lower prices increase consumer purchasing power, and because some consumers of substitute goods switch.

Answer 1

Answer:d.Quantity demanded goes up when price falls because lower prices increase consumer purchasing power, and because some consumers of substitute goods switch.

Explanation:

Causality refers to the cause and the effect which means when a particular situation occurs it results to the effect that is observed, there exist a relationship between variables such that when one variable changes it causes the change on the other variable.

For example in this case when price falls it results to an increase in consumer purchasing power and that increases the demand.

So the cause of price falling increases the effect on purchasing product by the consumers.