Which of the Following Should Be Held Constant When Calculating

question 281

Multiple Choice

Which of the following should be held constant when calculating an income elasticity of demand?

• A)the quantity of the good demanded
• B)the price of the good
• C)income
• D)All of the above should be held constant.

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Definitions:

Multiple Correlation R

Represents the strength and direction of a correlation between one dependent variable and two or more independent variables.

Significant

In statistics, significant means that an observed effect or relationship is unlikely to be due to chance, typically measured by a p-value.

Slope

A measure of the steepness, incline, or grade of a line, representing the rate of change in the y-variable for a one unit increase in the x-variable.

Regression Equation

An equation that describes the relationship between a dependent variable and one or more independent variables.