When Supply for a Good Decreases,consumers Respond by

question 174

Multiple Choice

When supply for a good decreases,consumers respond by

• A) decreasing their demand.
• B) increasing their preferences for the good.
• C) decreasing their quantity demanded.
• D) increasing their quantity demanded.
• E) purchasing more complementary goods.

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Definitions:

P-Value

The probability of observing results at least as extreme as those in a data set, given that the null hypothesis is true.

Hypothesis Testing

A statistical method used to decide whether a hypothesis about a parameter in a population is supported by the data gathered from a sample.

Test Statistic

A numerical value employed in statistical hypothesis testing for deciding if the null hypothesis should be discarded.

Confidence Interval

A range of values, determined from sample statistics, that is believed to contain the true population parameter with a certain probability.