If Both Market Demand and Supply Increase Simultaneously, What Will

question 17

Multiple Choice

If both market demand and supply increase simultaneously, what will happen to equilibrium quantity and equilibrium price?

• A) Quantity and price will both increase.
• B) Quantity will increase and price will be indeterminate.
• C) Quantity will be indeterminate and price will decrease.
• D) Quantity and price will both decrease.

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Definitions:

Wilcoxon Rank Sum Test

This is a method in statistics, not based on parameter assumptions, used for comparing the mean ranks of two distinct samples to see if they differ.

Ordinal

A type of categorical data where the order of the values is significant, but the difference between successive values is not necessarily constant.

Equal-Variances T-Test

A statistical method used to compare the means of two groups under the assumption that the two groups have the same variance.

Distribution-Free Tests

Statistical tests that do not assume a specific distribution shape for the population from which the sample is drawn, also known as non-parametric tests.