Assume a Market Is in Equilibrium

question 215

Multiple Choice

Assume a market is in equilibrium.There is an increase in supply,but no change in demand As a result the equilibrium price ________,and the equilibrium quantity ________.

• A) rises; increases
• B) rises; decreases
• C) rises; does not change
• D) falls; decreases
• E) falls; increases

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Definitions:

Confidence Level

A statistical measure expressed as a percentage that indicates the probability that a given interval contains the true parameter or result.

Normal Distribution

A bell-shaped curve that represents the distribution of many types of data, where most observations cluster around the central peak.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to a system.

Interval Estimation

A range of values used to estimate a population parameter, typically expressed as a confidence interval.