Which of the Following Statements Is True

question 178

Multiple Choice

Which of the following statements is true?

• A)An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply.
• B)A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
• C)If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
• D)If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

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Definitions:

Coefficient Of Correlation

A measure that quantifies the degree of linear relationship between two variables, ranging from -1 to 1.

Interval Variables

Quantitative variables where the intervals between the values are equal and meaningful, allowing for comparisons and mathematical operations.

Symmetric Distribution

A distribution where the left and right sides are mirror images of each other around the central point.

Skewed Distribution

A probability distribution that is not symmetrical, where one tail is longer or fatter than the other.