Assuming a Linear Relationship Between X and Y,if the Coefficient

question 7

Multiple Choice

Assuming a linear relationship between X and Y,if the coefficient of correlation (r) equals -0.75,this means that:

• A) there is very weak correlation.
• B) the slope b₁ is = -0.75.
• C) the value of X is always greater than the value of Y.
• D) None of these choices are true.

---

Definitions:

Market Price

The price of a commodity when sold in a competitive marketplace, determined by supply and demand.

Market Demand

The total demand for a product or service aggregated across all individuals in the market at various price levels.

Short-Run Costs

Costs that vary depending on the level of production or output in the short term, where some factors of production are fixed.

Zero Economic Profits

A situation in which a firm's total revenues are exactly equal to its total costs, including opportunity costs, indicating neither an economic profit nor loss.