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

question 36

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
​

-If both supply and demand for a good increase, which of the following will definitely happen?

• A)Equilibrium price will remain the same
• B)Equilibrium price will increase
• C)Equilibrium price will decrease
• D)Equilibrium quantity will increase
• E)Equilibrium quantity will decrease

---

Definitions:

One-tailed Test

A statistical hypothesis test in which the region of rejection is on only one side of the sampling distribution.

α

Symbol often used to represent the level of significance in hypothesis testing, typically denoting the probability of making a Type I error.

Null Hypothesis

A statement or hypothesis that assumes there is no significant difference or effect, serving as the basis for statistical testing.

Level of Significance

The threshold chosen for determining whether a statistical result is significant in hypothesis testing, typically set at values like 0.05, 0.01, etc.