In the Short-Run If There Is a Surplus in the Market

question 1

Multiple Choice

In the short-run if there is a surplus in the market for a product,the rationing function of price can be expected to cause

• A)an increasing shift in the demand for the product.
• B)a decreasing shift in the supply of the product.
• C)an increase in the market price of the product.
• D)a decrease in the market price of the product.

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Definitions:

Type I Error

Type I Error occurs when a false null hypothesis is rejected, indicating a false positive finding in hypothesis testing.

Sample Size

The number of observations or replicates included in a statistical sample, which influences the precision and reliability of the study's findings.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Control Group

In an experiment, the group that does not receive the treatment under investigation; used as a baseline to compare effects.