Table 6-4 The Following Table Contains the Demand Schedule and Supply Schedule

question 347

Multiple Choice

Table 6-4
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $3 above the equilibrium price in this market.
-Refer to Table 6-4. Following the imposition of a price floor $3 above the equilibrium price, irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor. The resulting shortage is

• A)0 units.
• B)4 units.
• C)5 units.
• D)10 units.

---

Definitions:

Z-test

A statistical test used to determine whether there is a significant difference between the mean of a sample and the mean of a population, or between the means of two samples, assuming a normal distribution.

T-test

A statistical test used to compare the means of two groups or samples to see if they are significantly different from each other.

Population Variances

A measure of the spread of a population's data points from its mean.

Test Statistic

A value derived from sample data, used in statistical hypothesis testing to determine whether to reject the null hypothesis.