The Price of X Was $10 in Year 1 and $14

question 151

Multiple Choice

The price of X was $10 in year 1 and $14 in year 2. Which of the following could be the correct reason for the rise in price?

• A)The demand for X was lower in year 2 than in year 1, ceteris paribus .
• B)The supply of X was greater in year 2 than in year 1, ceteris paribus .
• C)The demand for X was higher and the supply of X was lower in year 2 than in year 1.
• D)The demand for X was lower and the supply of X was greater in year 2 than in year 1.

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Definitions:

Parameter

A quantity or characteristic that defines or constrains how a system or model operates, often used in statistics to describe a population.

High School Education

The level of education typically completed from grades 9 to 12, serving as the foundation for future college or vocational training.

Proportion

A statistical measure that indicates the fraction of the total number of items or cases that belong to a particular category or exhibit a particular attribute.

Sample Proportion

The fraction of items in a sample that are of a particular type or category.