Suppose John and Wayne Are the Only Two Demanders of Cowboy

question 91

Multiple Choice

Suppose John and Wayne are the only two demanders of cowboy movies.Each month,John buys six cowboy movies when the price is $10 each,and he buys four cowboy movies when the price is $15 each.Each month,Wayne buys four cowboy movies when the price is $10 each,and he buys two cowboy movies when the price is $15 each.Which of the following points is on the market demand curve?

• A)quantity demanded = 2;price = $15
• B)quantity demanded = 4;price = $25
• C)quantity demanded = 10;price = $10
• D)quantity demanded = 16;price = $25

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Definitions:

Durbin-Watson Test

A statistical method designed to identify the existence of autocorrelation with a single lag in the residuals resulting from a regression study.

Positive Autocorrelation

A statistical property of a series indicating that values close together in time are positively correlated and tend to move in the same direction.

Durbin-Watson Statistic

A statistical measure employed to identify autocorrelation within the residuals of a regression analysis.

Independence of Errors

An assumption in statistical models indicating that the error terms are not correlated with each other.