A Regression Analysis Between Demand (Y in 1000 Units) and Price

question 31

Multiple Choice

A regression analysis between demand (y in 1000 units) and price (x in dollars) resulted in the following equation: ? $\hat {y }$ = 9 ? 3x
?
The above equation implies that if the price is increased by $1, the demand is expected to _____.

• A) increase by 6 units
• B) decrease by 3 units
• C) decrease by 6,000 units
• D) decrease by 3,000 units

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, such as heart rate, digestion, and respiratory rate.

Electrically Shocked

The experience of undergoing an electric shock, which is the sudden discharge of electricity through a part of the body, potentially causing harm.

Psychoanalysis

A therapeutic approach and theory of mind developed by Sigmund Freud, emphasizing unconscious motives and conflicts as the drivers of human behavior.

Unconscious Origins

The underlying, often unaware sources of thoughts, feelings, and behaviors, rooted in early experiences or the subconscious mind.