Suppose the Demand for Peanuts Increases

question 30

Multiple Choice

Suppose the demand for peanuts increases.What will happen to producer surplus in the market for peanuts?

• A)It increases.
• B)It decreases.
• C)It remains unchanged.
• D)It may increase,decrease,or remain unchanged.

---

Definitions:

Logistic Regression Model

A statistical model used to predict a binary outcome (such as yes/no, success/failure) based on one or more predictor variables.

Hypotheses

Assumptions or propositions that are subject to verification or falsification through scientific methods.

Indicator Variable

A variable used in statistics and econometrics that takes on a value of 1 if a specific condition is true and 0 if it is not.

Test Statistic

A value calculated from sample data during a hypothesis test used to decide whether to support or reject the null hypothesis.