Figure 6.5 -Figure 6.5 Shows the Short-Run and Long-Run Effects of an of an Increase

question 155

Multiple Choice

Figure 6.5
-Figure 6.5 shows the short-run and long-run effects of an increase in demand of an industry. The market is in equilibrium at point A, where 100 identical firms produce 6 units of a product per hour. If the market demand curve shifts to the right, what will happen to the number of firms in the industry as the industry moves from point A to point B?

• A)It increases.
• B)It decreases.
• C)It remains the same.
• D)either A or B or C

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Definitions:

Confidence Interval

A selection of numerical values, from the analysis of sample stats, predicted to encapsulate the value of an unknown attribute of the population.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and dividing by the count of those numbers.

Standard Error

A statistic that measures the dispersion of sample means around the population mean, estimating the variability within a data set.

Confidence Interval

Newly defined: A measure indicating the reliability of an estimate, often used to infer about the population parameter from sample data.