Assume That the Demand Curve for MP3 Players Shifts to the Right

question 69

Multiple Choice

Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shifts to the left,but the supply curve shifts less than the demand curve.As a result,

• A) both the equilibrium price and quantity of MP3 players will decrease.
• B) both the equilibrium price and quantity of MP3 players will increase.
• C) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
• D) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.

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Definitions:

Wilcoxon Rank-sum Test

A nonparametric test used to assess whether two independent samples come from the same distribution, focusing on their median ranks.

Statistical Populations

The complete set of subjects or items that are of interest in a statistical study.

Absolute Differences

The total difference between numbers or values, disregarding the direction of difference.

Wilcoxon Signed Rank Sum Test

A non-parametric statistical test used to compare two paired groups, assessing whether their population mean ranks differ.