The Manager of a Gas Station Along an Interstate Highway

question 50

Multiple Choice

The manager of a gas station along an interstate highway has observed that gasoline sales generally increase each week over the summer months as more families travel by car on vacations. He also believes that sales are sensitive to fluctuations in the price of gasoline. He developed the following regression model:
Sales ($) = $59,407 + $509 (Week) + 16,463 (Price/gallon)
-Which one of the following statements is TRUE?

• A) Sales decrease as a function of time.
• B) A $0.10 increase in the price of gas reduces weekly sales by 1,646 gallons.
• C) As the price of a gallon of gas increases, sales increase.
• D) None of the above is true.

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Definitions:

Labor Union

An organization of workers formed to protect and further their rights and interests through collective bargaining.

National Labor Relations (Wagner) Act

A 1935 United States federal law that protects the rights of employees to organize, form unions, and engage in collective bargaining, while prohibiting certain unfair labor practices.

Coercion or Interference

Actions or practices that force or unduly influence someone to act in a way that they would not otherwise choose.

Union Activity

Actions and efforts by labor unions aimed at advocating for workers' rights, wages, benefits, and working conditions.