Figure 7-1 Shows the Market Demand Curve and an Individual

question 5

Multiple Choice

Figure 7-1 shows the market demand curve and an individual firm's demand curve in a perfectly competitive market. In Graph A, the market demand has increased from d₀ to d₁ and, as a result, _____.Figure 7-1

• A)both the market price and the price of the price-taking firm have risen to $6
• B)both the market price and the price of the price-taking firm have fallen to $5
• C)the quantity of goods transacted in the market has fallen
• D)the firm will be unable to sell any of its output at the new equilibrium price
• E)some firms will sell their output at a higher price than others

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Definitions:

Nominal Variables

Variables that represent categorial data which can be labeled or named but not logically ordered.

Frequency Bar Chart

A graphical representation displaying the frequency of various outcomes in a dataset. Each bar represents the frequency of each outcome or category.

Original Observations

The initial data collected or measured directly in an experiment or study before any manipulation, transformation, or analysis.

House Ownership

The legal right of an individual or group to possess, use, and control a dwelling or residence.