Assume Goods X and Y Are Complements and Are Produced

question 99

Multiple Choice

Assume goods X and Y are complements and are produced in perfectly competitive markets.All else constant,an increase in demand for good X would cause:

• A)a decrease in the number of firms that produce good X.
• B)an increase in the number of firms that produce good Y.
• C)a decrease in the number of firms that produce good Y.
• D)no effect on the number of firms that produce either good.

---

Definitions:

Slope

In mathematics, the measure of the steepness, incline, or grade of a straight line, calculated as the ratio of vertical change to horizontal change between two points on the line.

Regression Analysis

A set of statistical processes for estimating the relationships among variables.

Least Squares Line

A line that minimizes the sum of the squares of the vertical distances of the points from the line, used in linear regression analysis.

Predicted Amount

A rephrased term for predicted values, indicating the numerical estimates generated by a predictive model.