If the Coefficient of Correlation Between X and Y Is

question 3

Multiple Choice

If the coefficient of correlation between x and y is close to 1.0,this indicates that:

• A)y causes x to happen.
• B) x causes y to happen.
• C) Both a and b.
• D) there may or may not be a causal relationship between x and y.

---

Definitions:

Market

A venue or system where buyers and sellers interact to trade goods, services, or financial instruments, determining prices through supply and demand.

Inverse Demand Function

A mathematical model describing the relationship between the price of a good and the quantity demanded, typically showing how price can affect demand levels.

Monopolist

An individual or entity that is the sole supplier of a particular commodity or service, having significant control over its market.

Price Discrimination

The strategy of selling the same product or service at different prices to different customers, based on factors like willingness to pay, market segments, or purchase quantity.