Suppose That Demand Decreases AND Supply Decreases

question 88

Multiple Choice

Suppose that demand decreases AND supply decreases.What would you expect to occur in the market for the good?

• A)equilibrium price would increase but the impact on equilibrium quantity would be ambiguous
• B)equilibrium price would decrease but the impact on equilibrium quantity would be ambiguous
• C)both equilibrium price and equilibrium quantity would increase
• D)equilibrium quantity would decrease but the impact on equilibrium price would be ambiguous

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Definitions:

Sampling Error

The discrepancy between a statistical measurement based on a sample and the actual population parameter.

Proportion

A part or fraction of a whole, often expressed as a percentage or ratio, reflecting the relative size or quantity of one quantity compared to another.

Population Proportions

Population proportions represent the fraction or percentage of members in a population that possess a particular attribute.

Confidence Level

The degree of certainty or probability with which one can expect a result to fall within a specified range.