A High Variance Indicates That

question 11

Multiple Choice

A high variance indicates that:

• A)the mean value is very high.
• B)most values are very close to the mean.
• C)most values are higher than the mean.
• D)most values are lower than the mean.
• E)the variation among the values is high.

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Definitions:

Equilibrium Quantity

The quantity of goods supplied is equal to the quantity demanded at the market equilibrium price.

Normal Good

A good for which demand increases when consumer income rises, and falls when consumer income decreases, all other factors being constant.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.

Equilibrium Price

The price in the market where the amount of a product that consumers want to buy is the same as the amount available for sale, resulting in a balanced market situation.