In the Following Question You Are Asked to Determine,other Things

question 175

Multiple Choice

In the following question you are asked to determine,other things equal,the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for,or supply (S) of,X; (2) the equilibrium price (P) of X;and (3) the equilibrium quantity (Q) of X. Refer to the given information.An increase in the price of a product that is a close substitute for X will:

• A) decrease D,increase P,and decrease Q.
• B) increase D,increase P,and decrease Q.
• C) increase D,increase P,and increase Q.
• D) increase D,decrease P,and increase Q.

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Definitions:

Normal Model

A type of statistical distribution that is symmetric, bell-shaped, and fully described by its mean and standard deviation.

Percentage

A proportion or share expressed as a fraction of 100.

Normal Model

Refers to a probability distribution that is symmetrically distributed around the mean, commonly known as the normal (or Gaussian) distribution.

Percentile

A value below which a given percentage of observations in a group of observations fall.