An Increase in the Demand for Peanuts Due to Changes

question 84

Multiple Choice

An increase in the demand for peanuts due to changes in consumer tastes,accompanied by an increase in the supply of peanuts as a result of favorable growing conditions,will result in

• A)an increase in the equilibrium quantity of peanuts and no change in the equilibrium price.
• B)an increase in the equilibrium price of peanuts and no change in the equilibrium quantity.
• C)an increase in the equilibrium price of peanuts; the equilibrium quantity may increase or decrease.
• D)an increase in the equilibrium quantity of peanuts; the equilibrium price may increase or decrease.

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Definitions:

Inferential Statistics

A branch of statistics that allows for making predictions or inferences about a population based on a sample.

Probabilities

Quantitative measures that indicate the likelihood of a specific event or outcome occurring.

Associations

Relationships or connections between two or more variables, where changes in one variable are related to changes in another.

Predictions

Forecasts or anticipations about future events based on current evidence or trends.