Consider the Following Sample Regression Equation = 200

question 138

Multiple Choice

Consider the following sample regression equation = 200 + 10x, where y is the supply for Product A (in 1,000s) and x is the price of Product A (in $) . The slope coefficient indicates that if ________.

• A) the price of Product A increases by $1, then we predict the supply to decrease by 10
• B) the price of Product A increases by $1, then we predict the supply to increase by 10
• C) the price of Product A increases by $1, then we predict the supply to decrease by 10,000
• D) the price of Product A increases by $1, then we predict the supply to increase by 10,000

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