The Quantities of Good M Are Plotted on the Vertical

question 434

Multiple Choice

The quantities of Good M are plotted on the vertical axis while the quantities of Good N are plotted on the horizontal axis. The prices of both M and N fall. The intercepts of the budget line would

• A) decline along both axes.
• B) rise on the vertical axis and also rise on the horizontal axis.
• C) rise on the horizontal axis but stay unchanged on the vertical axis.
• D) rise on the vertical axis but stay unchanged along the horizontal axis.

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Definitions:

Logistic Regression Model

A statistical method used for analyzing a dataset in which there are one or more independent variables that determine an outcome. The outcome is measured with a dichotomous variable (where there are only two possible outcomes).

Indicator Variable

A variable, usually binary, used to represent the presence or absence of a categorical effect in regression models.

Groceries

Consumer goods, especially food and household items, sold by a grocer.

Log Odds

The logarithm of the odds ratio, used in logistic regression to describe the relationship between a binary dependent variable and one or more independent variables.