The Following Table Shows the Demand For, and Supply Of

question 149

Multiple Choice

The following table shows the demand for, and supply of, soya milk in a particular market (the quantities are in thousands of liters per day) :
$$\begin{array} { l l l } \begin{array} { c} \text { \$ Price } \\\text { per litre }\end{array} & \text { Demand } & \text { Supply } \\1.80 & 160 & 142 \\1.90 & 156 & 144 \\2.00 & 152 & 146 \\2.10 & 148 & 148 \\2.20 & 144 & 150 \\2.30 & 140 & 152 \\2.40 & 136 & 154\end{array}$$
-What is the effect on the price of an increase in demand?

• A) It will be small if the supply curve is flat.
• B) It will be big if the supply curve is flat.
• C) It will be small if the supply curve is steep.
• D) It will be big if the demand curve is flat.

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Definitions:

Standard Error

A measure of the statistical accuracy of an estimate, calculated from the standard deviation of a series of estimates.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population.

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly used to measure the accuracy of a sample mean.