Kelly works at an ice cream shop and observes that the number of people buying ice cream 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. if kelly is using the scientific method to better understand ice cream buying habits, her next step is to multiple choice use the observed data to form a hypothesis about ice cream buying behavior. conclude definitively that people buy more ice cream when the temperature rises. throw out the data if it does not show a perfect relationship between buying habits and the other information she has collected. state her findings as a well-tested economic principle.

Consider the market for gas-powered small cars. assume gas-powered small cars are a normal good. for each of the following events, identify which of the determinants of demand or supply are affected. if demand is unaffected by this event because it creates only a supply change, select the “none” option under the “demand determinant” column. similarly, if supply is unaffected by this event because it creates only a demand change, select the “none” option under the “supply determinant” column. event demand determinant supply determinant people decide to have more children. the price of electric small cars falls. the discovery of a new source of iron ore lowers steel prices. an economic recession lowers people’s wealth. a number of major car dealers decide to switch from selling gas-powered cars to selling electric cars. show the effect of the following event on the market for gas-powered small cars: people decide to have more children for each of the four independent situations, prepare the journal entries to record the exchange on the books of each company.