Exhibit 3-3 -If the Supply of and Demand for a Product Both

question 129

Multiple Choice

Exhibit 3-3

-If the supply of and demand for a product both decrease,then equilibrium

• A) quantity and equilibrium price must both decline.
• B) quantity must decline, but equilibrium price may either rise, fall, or remain unchanged.
• C) price must fall, but equilibrium quantity may either rise, fall, or remain unchanged.
• D) quantity must fall and equilibrium price must rise.

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Definitions:

Population Defective Rate

The proportion of items in a specified population that are considered to be defective or unsatisfactory.

OC Curve

Operating Characteristic Curve; it's a graphical representation used in statistical quality control to show the probability of accepting lots or batches of items based on their quality.

AOQ Curve

A graphical representation depicting how the Average Outgoing Quality changes in relation to the fraction of products inspected or the effectiveness of the screening process.

Population Defective Rate

A measure in quality control that indicates the percentage of items in a population that are considered to be defective.