We Cannot Predict the Effect on the Market Clearing Price

question 86

Multiple Choice

We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will decrease when

• A) supply increases and demand decreases
• B) supply decreases and demand increases.
• C) supply and demand for a product simultaneously decrease.
• D) supply and demand for a product simultaneously increase.

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Definitions:

Binomial Parameters

Refer to the number of trials (n) and the probability of success (p) in a binomial distribution, which determines the behavior of this discrete probability distribution.

Alternative Hypothesis

In statistical hypothesis testing, a statement that contradicts the null hypothesis, suggesting that there is a statistically significant difference between observed data and the expected outcome under the null hypothesis.

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.