If the Demand for a Product Remains the Same and the Supply

question 193

Multiple Choice

If the demand for a product remains the same and the supply falls,

• A) the market clearing price will fall and the equilibrium quantity will rise.
• B) the market clearing price will rise and the equilibrium quantity will fall.
• C) both the market clearing price and the equilibrium quantity will fall.
• D) both the market clearing price and the equilibrium quantity will rise.

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Definitions:

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the differences between observed values and those predicted by a linear model.

P-value

The probability of obtaining test results at least as extreme as the results actually observed, under the assumption that the null hypothesis is correct.

Significant

Indicating a statistically meaningful relationship or difference in data, often determined by achieving a p-value below a predefined threshold.

Least Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of squares of the residuals.