Imagine a Free Market in Equilibrium

question 201

Multiple Choice

Imagine a free market in equilibrium. After a sudden increase in supply (but before the price can adjust) , the market experiences a:

• A) shortage.
• B) surplus.
• C) no change.
• D) new equilibrium.

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Definitions:

Fast Food

A type of food service that emphasizes minimal preparation time and quick service, often associated with preheated or precooked ingredients served in a packaged form for take-away.

Probability Mass Function

An operation that calculates the chance that a given discrete random variable precisely equals a certain value.

Probability Density Function

A mathematical function that describes the likelihood of a continuous random variable taking on a specific value.

Normal Distribution

A bell-shaped frequency distribution that is symmetrical about the mean, describing how many data points, given continuous variables, distribute in nature.