Total Surplus in a Market Will Increase When the Government

question 11

Multiple Choice

Total surplus in a market will increase when the government

• A)imposes a binding price floor or a binding price ceiling on that market.
• B)imposes a tax on that market.
• C)Both a and b are correct.
• D)Neither a nor b is correct.

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Definitions:

Representative Sample

A subset of a population that accurately reflects the members of the entire population.

Larger Population

Refers to a greater number of individuals within a particular group or area being studied.

Directional Research Hypothesis

A hypothesis that specifies the direction of the expected relationship or difference between variables, indicating whether one variable is hypothesized to be greater than, less than, or different from another.

Null Hypothesis

A statement used in hypothesis testing that assumes there is no significant difference or effect.