With a Given Supply Curve,a Decrease in Demand Leads to

question 68

Multiple Choice

With a given supply curve,a decrease in demand leads to

• A)a decrease in equilibrium price and an increase in equilibrium quantity.
• B)an increase in equilibrium price and a decrease in equilibrium quantity.
• C)a decrease in equilibrium price and a decrease in equilibrium quantity.
• D)no change in price and a decrease in equilibrium quantity.

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Definitions:

Linear Trend

A consistent upward or downward slope in a dataset, indicating an increase or decrease in the variable over time.

Exponential Trend

A pattern of data that showcases growth or decay at a constantly increasing rate, often represented graphically as a curved line.

Autoregressive(2)

A type of statistical model used in time series analysis in which a variable's current value is predicted from its own previous values, using two time-lags.

Second-order Autoregressive Model

A stochastic process where the current value is based on a linear combination of the two immediately prior values plus an error term.