When the Demand for a Good Decreases, Its Equilibrium Price

question 438

Multiple Choice

When the demand for a good decreases, its equilibrium price ________ and equilibrium quantity ________.

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

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Definitions:

Mode

The most common number found in a set of data.

Outliers

Data points that differ significantly from the majority of a data set, often indicating a variance or error in measurement.

Variability

The tendency of data points in a dataset to vary from each other and from the mean of the dataset.

Mode

The value that appears most frequently in a data set, representing the highest peak in a frequency distribution.