In order to determine a causation between a change in the price of iPads and the amount of iPads purchased by customers,an economist must show that
A)there is no correlation between the price of iPads and the quantity of iPads purchased.
B)the change in the quantity of iPads purchased occurs after the change in the price of iPads.
C)the change in the price of iPads occurs along with the change in the quantity of iPads purchased.
D)the changes in the price and quantity of iPads purchased always move in the same direction.
E)the change in the price of iPads brings about the change in the quantity of iPads purchased.

Question

Quizplus · Accepted Answer

To determine causation, the economist must establish a clear cause and effect relationship, meaning that the change in one variable (price of iPads) must bring about a specific change in the other variable (quantity of iPads purchased). In this case, the best option is E, which states that the change in the price of iPads brings about the change in the quantity of iPads purchased. This implies that the economist has established a causal relationship, where the change in price is the cause, and the change in quantity is the effect. The other options (A, B, C, and D) do not meet this criteria and are not sufficient to establish a causal relationship.

In Order to Determine a Causation Between a Change in the Price