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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