Use the Following to Answer Questions

question 32

Multiple Choice

Use the following to answer questions
Mauricio Cruz, a wine merchant for Cruz's Spirits Emporium, wants to determine if the average price of imported wine is less than the average price of domestic wine. He obtained the data shown in the table below.
-What is the critical value at α = 0.05?

• A) -1.761
• B) -1.753
• C) -2.145
• D) -2.131

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, above which it cannot rise, often set by government.

Shortage

A market condition in which the demand for a product exceeds its supply at a particular price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to buy.

Living Wage

A wage level that is high enough to maintain a normal standard of living.