Use the Following to Answer Question

question 49

Multiple Choice

Use the following to answer question:
-(Figure: The Market for Oranges in South Africa) Use Figure: The Market for Oranges in South Africa.In autarky,the price of oranges in South Africa is P₁.When the economy is opened to trade,the price falls to P_W and the change in total surplus is area:

• A)O.
• B)O + P.
• C)M + N + O + P.
• D)M + N + O + P + Q.

---

Definitions:

Hypothesis Test

A method in statistics to determine whether there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

P-Value

The probability of observing test results at least as extreme as the results actually observed, assuming that the null hypothesis is correct.

Left Tailed

Refers to a type of hypothesis test where the area of interest, or region of rejection, is located in the left tail of the distribution.

Test-Statistic

A quantity derived from sample data used in a hypothesis test to make a decision about the population parameter.