Use the Following to Answer Questions: Table: Equilibrium Adjustment -(Table: Equilibrium Adjustment) Refer to the Table

question 247

Multiple Choice

Use the following to answer questions: Table: Equilibrium Adjustment $$\begin{array} { c c c } \hline \text { Price } & \text { Quantity Demanded } & \text { Quantity Supplied } \\\hline \$ 10 & 100 & 160 \\8 & 120 & 145 \\6 & 130 & 130 \\4 & 140 & 115 \\2 & 150 & 100 \\\hline\end{array}$$
-(Table: Equilibrium Adjustment) Refer to the table. If the price in the free market is $8, then a:

• A) surplus of 25 units would exist, and price would tend to fall.
• B) surplus of 25 units would exist, and price would tend to rise.
• C) shortage of 25 units would exist, and price would tend to rise.
• D) shortage of 25 units would exist, and price would tend to fall.

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Definitions:

One-sided Test

A hypothesis test in which the alternative hypothesis specifies a direction of effect, either greater than or less than a value specified in the null hypothesis.

T Procedures

Statistical methods based on the t-distribution that are used to estimate population parameters and test hypotheses, especially when sample sizes are small.

Probability Calculations

The process of determining the likelihood of a given outcome, often expressed as a number between 0 and 1.

Normal Data

Data that follows a normal distribution, characterized by a bell-shaped curve where most observations cluster around a central peak and probabilities for values taper off equally in both directions.