Assume the Market in the Graph Is in Equilibrium at Demand

question 53

Multiple Choice

Assume the market in the graph is in equilibrium at demand (D) and supply (S₁) . If the supply curve shifts to S₂, and a new equilibrium is reached, producer surplus will:

• A)increase by $90.
• B)increase by $120.
• C)decrease by $20.
• D)decrease by $30.

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Definitions:

P-value

The probability of finding the observed, or more extreme, results when the null hypothesis of a study question is true.

Null Hypothesis

A hypothesis used in statistical testing that assumes there is no significant difference or effect, serving as the premise to be tested against the alternative hypothesis.

Null Hypothesis

A statement used in hypothesis testing that assumes there is no significant difference or effect and that any observation is due to chance.

Alternative Hypothesis

A theory that proposes there is a statistically significant relationship between two variables, contrasting the null hypothesis.