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

question 47

Multiple Choice

A regression analysis between demand (y in 1000 units) and price (x in dollars) resulted in the following equation: ​ = 9 - 4x
​
The above equation implies that if the price is increased by $1, the demand is expected to

• A) increase by 5 units.
• B) decrease by 4 units.
• C) decrease by 5000 units.
• D) decrease by 4000 units.

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Definitions:

Freud

A reference to Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Stimulus-stimulus Learning

A process in classical conditioning where a neutral stimulus becomes capable of eliciting a response after being paired with another stimulus that naturally evokes a response.

John B. Watson

An American psychologist who is considered one of the founders of behaviorism, emphasizing the importance of observable behavior over internal mental states.

Phobias

Irrational, intense, persistent fears of certain situations, activities, things, or people, leading to avoidance behavior.