Suppose That a Perfectly Competitive Market Is in Equilibrium,and Then

question 68

Multiple Choice

Suppose that a perfectly competitive market is in equilibrium,and then market supply decreases.Which of the following would happen?

• A)both producer and consumer surplus would increase
• B)both producer and consumer surplus would decrease
• C)producer surplus would decrease and consumer surplus would increase
• D)producer surplus would increase and consumer surplus would decrease
• E)producer and consumer surplus would remain unchanged

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Definitions:

Regression Model

A regression model is a statistical approach used to describe the relationship between a dependent variable and one or more independent variables.

Multiple Regression

A statistical technique that models the relationship between a dependent variable and two or more independent variables.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression, often indicating the slope in linear equations or the degree of variation in correlation.

Unit Change

A measure indicating the change in outcome associated with a one-unit change in an independent variable within a statistical model.