The Table Given Below Reports the Quantity Demanded of a Good

question 40

Multiple Choice

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-Last year a firm made 1,000 units of its product available at a price of $5 per unit. This year the firm will still make 1,000 units available, but only if the price is $7 per unit. What is most likely to have happened?

• A)Supply has increased
• B)Supply has decreased
• C)Demand has decreased
• D)Quantity demanded has increased
• E)Quantity supplied has increased

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Definitions:

Decreasing

Involving a reduction in amount, size, strength, or number; moving in a descending order.

β Value

A parameter in statistical models, especially regression analysis, representing the slope of the line of best fit or the degree of change in the dependent variable for a one-unit change in an independent variable.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, commonly denoted by alpha (α) and used to measure the strength of evidence against the null hypothesis.

α

Typically represents the level of significance in hypothesis testing, indicating the probability of rejecting the null hypothesis when it is actually true.