Consider the Following Sample Regression Equation = 200

question 105

Multiple Choice

Consider the following sample regression equation = 200 + 10x,where y is the supply for Product A (in 1000s) (in 1,000s) and x is the price of Product A (in $) .The slope coefficient indicates that if ___________.

• A) the price of Product A increases by $1,then on average,supply decreases by 10
• B) the price of Product A increases by $1,then on average,supply increases by 10
• C) the price of Product A increases by $1,then on average,supply decreases by 10,000
• D) the price of Product A increases by $1,then on average,supply increases by 10,000

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Definitions:

Satisficing Decisions

Choose the first satisfactory alternative that comes to your attention.

Behavioural Decision Model

An approach to understanding decision-making, focusing on how individuals interpret and respond to information based on psychological and behavioural factors.

Bounded Rationality

A concept that decision-makers are limited in their decision-making capabilities by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.

Cognitive Limitations

Cognitive limitations are the boundaries of human brain’s capacity to learn, remember, and make rational decisions.