In the Regression Equation,y = 75

question 29

Multiple Choice

In the regression equation,y = 75.65 + 0.50x,the slope is ___.

• A)0.50
• B)75.65
• C)1.00
• D)0.00
• E)-0.50

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Definitions:

Consumer Surplus

The discrepancy between what consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, serving as an indicator of producer welfare.

Direct Price Discrimination

A pricing strategy where a business charges different prices to different customers for the same product or service, based on willingness to pay.

Arbitrage

A means to defeat a price discrimination scheme; it occurs when low-value individuals are able to resell their lower-priced goods to the higher-value group.