If a Price Ceiling Were Established Above the Equilibrium Price

question 304

Multiple Choice

If a price ceiling were established above the equilibrium price,

• A) it would have no effect on the quantity demanded.
• B) it would create a shortage.
• C) it would create a surplus.
• D) none of the above.

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Definitions:

P-value

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

Statistically Significant

Indicates that the result of a statistical analysis is unlikely to have occurred by chance alone, according to a predefined significance level.

Null Hypothesis

A statement used in statistical testing that assumes no effect or no difference between groups, serving as the default assumption to test against.

Alternative Hypotheses

In statistics, alternative hypotheses suggest that there is a significant difference, effect, or relationship between two variables.