In the Figure Given Below, D₁ and S₁ Are the Initial

question 23

Multiple Choice

In the figure given below, D₁ and S₁ are the initial demand and supply curves for a commodity in the market.Figure 3.3

-Refer to Figure 3.3. If the change in the demand in this market occurred before the change in supply, then starting from the initial equilibrium:

• A) firms would experience a fall in profits and then a gradual increase in profits after the change in supply occurred.
• B) there would be an immediate shortage, lasting until the price reaches P₂.
• C) price would change from P₁ to P₂ after the change in demand and would change again from P₃ to P₄ after the change in supply.
• D) there would be a surplus until the price reaches P₄.
• E) there would be a surplus even after price reaches P₄.

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Definitions:

Degrees of Freedom

The total number of individual elements or magnitudes that can alter within an examination without contravening any conditions.

Output

The final product, result, or amount produced by a process, system, or activity.

Multicollinearity

A statistical phenomenon where two or more independent variables in a regression model are highly correlated, potentially affecting the reliability of the model’s coefficients.

T-Tests

Statistical tests used to compare the means of two groups or the mean of one group against a known mean.