Figure 3-8 -Refer to Figure 3-8.The Graph in This Figure Illustrates an Figure

question 90

Multiple Choice

Figure 3-8
-Refer to Figure 3-8.The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D₁ and S₂ (point B) .If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good) ,the equilibrium could move to which point?

• A)A
• B)B
• C)C

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Definitions:

Two-tail Test

A statistical test in which the critical area of a distribution is two-sided and tests whether a sample is either greater than or less than a range of values.

Nominal Data

Data that represents categories with labels or names, where the order of the categories is not meaningful.

Z-test

A statistical test used to determine whether two population means are different when the variances are known and the sample size is large.

Chi-square Test

A statistical test used to determine if there is a significant difference between the observed frequencies and the expected frequencies in one or more categories.