In Regression Analysis, If the Dependent Variable Is Measured in Dollars

question 4

Multiple Choice

In regression analysis, if the dependent variable is measured in dollars, the independent variable _____.

• A) must also be in dollars
• B) must be in some unit of currency
• C) can be any units
• D) cannot be in dollars

---

Definitions:

Decrease in Demand

A downward shift in the demand curve for a product or service, indicating that consumers are willing to purchase less at each price level.

Substitution Effect

The Substitution Effect refers to changes in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less costly alternatives.

Tea

A beverage made by steeping processed leaves, buds, or twigs of the tea plant in hot water, enjoyed globally for its aromatic flavors.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.