In a Simple Least-Squares Regression Where X Refers to the Number

question 37

Multiple Choice

In a simple least-squares regression where X refers to the number of sales calls made by a sales department and Y refers to the monthly total cost of the sales department, the value of X in the regression output would represent:

• A)the estimated monthly total costs of the sales department.
• B)the estimated monthly fixed costs of the sales department.
• C)the estimated monthly variable costs per unit of the sales department.
• D)the percent of variation in Y that is explained by X.

Understand and calculate the point elasticity of demand and supply in equilibrium.

Determine the economic effects of government interventions, such as taxes and subsidies, on market outcomes.

Calculate the revenue generated from taxes imposed on goods and services.

Understand the burden distribution of taxes between producers and consumers.

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Definitions:

Cross-price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, represented as a ratio.

Complements

Goods or services that are used together, where the consumption of one enhances the use or value of the other.

Inferior Goods

Goods for which demand decreases as consumer income rises, opposite to normal goods.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases as consumer income falls.