If Both the Demand and Supply Increase, the Equilibrium Quantity

question 440

Multiple Choice

If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.

• A) increases; falls
• B) decreases; might rise, fall, or not change
• C) decreases; rises
• D) increases; might rise, fall, or not change

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Definitions:

Null Hypothesis

A statement or assumption that there is no effect or no difference, and it serves as the starting point for statistical testing.

Sample Proportion

The fraction or percentage of observations in a sample that belong to a particular category, used to estimate the proportion in the entire population.

Two-Tailed Hypothesis

A statistical test hypothesis that considers both directions of deviation from the null hypothesis, thus testing for the possibility of both positive and negative effects.

Population Proportion

The ratio of a specific subgroup within a population to the entire population, typically expressed as a percentage.