If Oranges and Grapefruit Are Close Substitutes, an Increase in the Price

question 202

Multiple Choice

If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of

• A)both products to the right.
• B)both products to the left.
• C)grapefruit to the right.
• D)oranges to the left.

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Definitions:

Predictor Variable

A variable that is used in statistical models to forecast or predict the outcome of a dependent variable.

Regression Formula

An equation that describes the statistical relationship between one or more predictor variables and the response variable.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Regression Formula

A mathematical equation used in statistical analysis to predict the value of a dependent variable based on the value(s) of one or more independent variables.