The Following Question Are Based on the Following Diagram

question 30

Multiple Choice

The following question are based on the following diagram:

-At the equilibrium price

• A) scarcity is eliminated.
• B) everyone is content.
• C) there is no inflation.
• D) price equals quantity.
• E) quantity demanded equals quantity supplied.

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Definitions:

Internal Validity

refers to the extent to which a study can demonstrate a clear cause-and-effect relationship between variables, unconfounded by extraneous factors.

Causal Relationships

Connections between variables where a change in one variable directly influences a change in another.

External Validity

The extent to which the findings of a study can be generalized to other settings, populations, or time periods.

Laboratory Experiments

Experiments conducted in a controlled environment where variables can be manipulated and measured precisely.