If the Cost of Producing Sofas Decreases,then Consumer Surplus in the Sofa

question 63

Multiple Choice

If the cost of producing sofas decreases,then consumer surplus in the sofa market will

• A)increase.
• B)decrease.
• C)remain constant.
• D)increase for some buyers and decrease for other buyers.

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Definitions:

Type I Error

An erroneous denial of a valid null hypothesis, commonly called a "false positive."

Null Hypothesis

A hypothesis used in statistics that suggests there is no significant difference or effect, typically to be tested against an alternative hypothesis.

Alternative Hypothesis

The hypothesis that proposes a difference or relationship exists between two variables, contrasting the null hypothesis.

Population Parameter

A numerical value that represents a characteristic of a population.