A Regression Analysis Between Demand (Y in 1000 Units) and Price

question 56

Multiple Choice

A regression analysis between demand (Y in 1000 units) and price (X in dollars) resulted in the following equation = 9 - 3X
The above equation implies that if the price is increased by $1, the demand is expected to

• A)increase by 6 units
• B)decrease by 3 units
• C)decrease by 6,000 units
• D)decrease by 3,000 units

Understand the Nash equilibrium concept and its application in strategic decision-making.

Analyze the impact of probability and strategic choices in game outcomes.

Calculate long-run equilibrium conditions in dynamic models.

Understand market competition dynamics, including entry deterrence and monopoly power.