When Supply Decreases, the Equilibrium Price and the Equilibrium Quantity

question 440

Multiple Choice

When supply decreases, the equilibrium price and the equilibrium quantity .

• A) falls; decreases
• B) rises; increases
• C) falls; increases
• D) rises; decreases

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to estimate the population parameter.

Normal Populations

Populations that follow a normal distribution, where the majority of data points are concentrated around the mean value.

Standard Error

A statistical term that measures the accuracy with which a sample distributes around the population mean; it is the standard deviation of the sampling distribution.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to estimate population parameters.