The Table Above Shows a Sample of Actual Data Used

question 87

Multiple Choice

The table above shows a sample of actual data used to estimate the demand function for Happy Clams seafood dinners.
-Refer to the table above. Excel estimates the demand function for Happy Clams seafood dinners to be: Q^d = 1,200 - (20.50 × P) . Which of the following statements is true?

• A)When the price is equal to $25, the estimated residual is 0.
• B)When the price is equal to $25, the estimated residual is - 1.50.
• C)When the price is equal to $25, the estimated residual is 1.50.
• D)When the price is equal to $25, the predicted quantity of dinners sold exceeds the predicted quantity of dinners sold.

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Definitions:

Substantive Unconscionability

A legal doctrine that refers to unfair or excessively one-sided contract terms that shock the conscience.

Contract Terms

Clauses and conditions outlined in a contract that determine the rights and obligations of the involved parties.

Age of Majority

The legal age at which an individual is recognized as an adult and can engage in activities such as voting and signing contracts.

Illegal Subject

Refers to a topic or matter that is prohibited by law and cannot legally be the subject of a contract or agreement.