If Workers Who Make DVDs Get a Pay Raise, the Equilibrium

question 497

Multiple Choice

If workers who make DVDs get a pay raise, the equilibrium price of a DVD ________ and the equilibrium quantity of DVDs ________.

• A) rises; increases
• B) rises; decreases
• C) falls; decreases
• D) falls; increases

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Definitions:

Sample Median

The middle value of a sample data set arranged in ascending or descending order, used as a measure of central tendency.

Bootstrapping

A statistical method that resamples a single dataset to create many simulated samples, used in assessing the precision of sample estimates.

Resamples

The practice of repeatedly drawing samples from a given dataset with the intention of estimating a population parameter.

With Replacement

Sampling with replacement is a method where each selected unit is returned to the population before the next unit is selected, allowing it to be possibly chosen more than once.