When Demand Increases, the Equilibrium Price _______And the Equilibrium Quantity

question 15

Multiple Choice

When demand increases, the equilibrium price _______and the equilibrium quantity _______.

• A) rises; increases
• B) falls; decreases
• C) rises; decreases
• D) falls; increases

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Definitions:

Null Hypothesis

A hypothesis that assumes no significant difference or relationship exists in the general population from which a sample is drawn.

Variance

A measure of the dispersion of a set of data points around their mean; the square of the standard deviation.

Level of Significance

The probability threshold below which the null hypothesis is rejected in hypothesis testing, typically denoted by alpha (α).

Null Hypothesis

A statement that there is no effect or no difference, and it serves as the default or starting assumption in hypothesis testing.