The Scatter Diagram Above Shows the Actual Data for the Price

question 18

Multiple Choice

The scatter diagram above shows the actual data for the price and quantity demanded of a product.
-Refer to the scatter diagram above. The scatter diagram suggests all of the following, except which one?

• A)The R² is likely to be greater when an nonlinear demand curve is estimated compared to a straight- line demand curve.
• B)The estimated demand will have a negative slope.
• C)A straight- line demand curve is likely to be a better fit to the actual data compared to a nonlinear demand curve.
• D)The R² is likely to be greater when a straight- line demand curve is estimated compared to a nonlinear demand curve.

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Definitions:

Sociologist

A social scientist who studies the development, structure, and functioning of human society and the dynamics of social relationships.

Positivism

The theory that sense perceptions are the only valid source of knowledge.

Ultimate Cause

The deeper underlying reason or explanation for an event or phenomenon, often contrasted with more immediate "proximate" causes.

Mathematics

A branch of science that deals with the logic of shape, quantity, and arrangement.