The Law of Demand Is Based on the Observation That

question 433

Multiple Choice

The law of demand is based on the observation that

• A)people buy less of a product when the product becomes less fashionable.
• B)people buy more of a product when the price falls.
• C)people are indifferent to price changes.
• D)stores go out of business if they lower prices.

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Definitions:

Predict

To declare or indicate in advance; especially, using data and analysis to forecast the occurrence of an event or trends.

Yachts

A type of recreational boat or ship, often luxurious and used for personal pleasure or sports.

Outlier

An observation that lies an abnormal distance from other values in a random sample from a population.

Linear Model

A mathematical model that assumes a linear relationship between input variables and the single output variable, where the output can be calculated from a linear combination of the inputs.