Exhibit 3-1 -Consider the Market Described by the Schedule in Exhibit 3-1

question 13

Multiple Choice

Exhibit 3-1
-Consider the market described by the schedule in Exhibit 3-1. Which of the following is true?

• A)The law of supply is violated.
• B)There is no equilibrium.
• C)At $5 per unit, people will purchase 100 units.
• D)At $2 per unit, people will purchase 700 units.
• E)The law of demand is violated.

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Definitions:

Y-Intercept

The point at which a line crosses the y-axis in a Cartesian coordinate system.

Linear Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables by fitting a linear equation to observed data.

Predicted Value

An estimated value calculated within the context of a statistical model based on existing observations and variables.

Y-Intercept

The point where a line crosses the Y-axis in a graph or chart.