Which of the Following Would Cause a Decrease in Both

question 11

Multiple Choice

Which of the following would cause a decrease in both the price and quantity of a good exchanged?

• A)​A strike by production workers in the industry.
• B)​A subsidy to the industry from the government.
• C)​A decrease in advertising expenditures by the industry.
• D)​A decrease in the price of a complement good.

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Definitions:

Y-intercept

The point where a line crosses the Y-axis of a graph, indicating the value of the dependent variable when the independent variable is zero.

Independent Variable

A variable in an experiment or study that is manipulated to observe its effect on a dependent variable.

SSE

Squared Error Sum, a statistical metric that quantifies the difference between observed data and a predictive model's estimates.

Sample Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables in a sample.