Suppose a Market Begins in Equilibrium

question 487

Multiple Choice

Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is

• A) is less than the quantity supplied and a surplus results.
• B) is less than the quantity supplied and a shortage results.
• C) exceeds the quantity supplied and a surplus results.
• D) exceeds the quantity supplied and a shortage results.

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Definitions:

Null Hypothesis

A statement used in statistics that proposes no significant difference or effect.

Test Statistic

A value calculated from sample data that is used in hypothesis testing to determine if there is evidence to reject the null hypothesis.

Inferential Statistics

A branch of statistics focused on drawing conclusions and making predictions about a population based on a sample.

Inferential Parameters

Parameters derived from sample data for the purpose of making inferences about the larger population.