Consider the Following Sample Regression Equation = 150 -

question 92

Multiple Choice

Consider the following sample regression equation = 150 - 20x,where y is the demand for Product A (in 1,000s) and x is the price of the product (in $) .The slope coefficient indicates that if ______________.

• A) the price of Product A increases by $1,then on average,demand decreases by 20
• B) the price of Product A increases by $1,then on average,demand increases by 20
• C) the price of Product A increases by $1,then on average,demand decreases by 20,000
• D) the price of Product A increases by $1,then on average,demand increases by 20,000

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