In Regression Analysis, If the Dependent Variable Is Measured in Dollars

question 94

Multiple Choice

In regression analysis, if the dependent variable is measured in dollars, the independent variable

• A) must also be in dollars.
• B) must be in some units of currency.
• C) can be measured in any units.
• D) cannot be in dollars.

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Definitions:

Equilibrium

A state in which market supply and demand are balanced, resulting in stable prices.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can influence prices significantly.