Which of the Following Would Cause an Increase in the Price

question 86

Multiple Choice

Which of the following would cause an increase in the price of gasoline and an expansion in the equilibrium quantity?

• A) an increase in the price of crude oil, a key ingredient required for the production of gasoline
• B) the introduction of a miracle carburetor that substantially improves the gas mileage of automobiles
• C) a recession that substantially reduces the income of households
• D) an increase in the popularity and use of Sport Utility Vehicles that consume a lot of gasoline per mile driven

Understand and calculate degrees of freedom in different settings.

Apply statistical tests to evaluate hypotheses regarding population distributions.

Distinguish between null and alternative hypotheses in statistical tests.

Utilize chi-square tests for goodness of fit, independence, and homogeneity in categorical data.

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Definitions:

Probability

The likelihood of a specific event or outcome occurring.

Fair Insurance Policy

An insurance policy characterized by equitable premiums, coverage, and terms that are just and reasonable for both the insurer and the insured.

Expected Utility

A theory in economics that predicts how individuals make choices under conditions of uncertainty to maximize their satisfaction.

Probability

A measure of the likelihood that a certain event will occur, often expressed as a number between 0 and 1.