With a Given Supply Curve, If the Demand Curve Shifts

question 38

Multiple Choice

With a given supply curve, if the demand curve shifts to the right, _____.

• A) both the equilibrium price and quantity will increase
• B) the equilibrium price will increase but the equilibrium quantity will decrease
• C) the equilibrium price will decrease but the equilibrium quantity will increase
• D) both the equilibrium price and quantity will decrease

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Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Chi-square

A statistical test used to examine differences with categorical variables, assessing how likely observed frequencies are due to chance.

Variance

Variance is a statistical measure that indicates the spread or dispersion of a set of data points or distribution around the mean.

Sample Variance

A measure of variation or dispersion of a set of sample values, calculated as the average of the squared differences from the Sample Mean.