Question

**The Law of Supply:** The *Law of Supply*
states that an increase in price will result in an increase in the
quantity supplied (assuming all other factors remain unchanged).
Below is the scatterplot, regression line, and corresponding
statistics for Price (*x*) -vs- Quantity Supplied
(*y*) data.

regression equation:ŷ = 104.22 − 28.7xsample size:n = 12 |

Answer the following questions regarding the relationship
between price (*x*) and supply (*y*).

(a) What is the slope of the regression equation?

12

−28.7

104.22

0.884

(b) With respect to the variables involved, choose the best
interpretation of the slope of the regression equation.

For every extra unit supplied, you can expect the price to
**decrease** by 104.22 dollars.For every extra unit
supplied, you can expect the price to **increase** by
104.22 dollars. For every 1 dollar increase
in price, you can expect the supply to **decrease** by
104.22 units.For every 1 dollar increase in price, you can expect
the supply to **increase** by 104.22 units.

Additional Materials

Answer #1

The supply of leather jackets would be expected to increase as
a result of:
A) an increase in the
cost of producing leather jackets.
B) an increase in the
price of leather jackets
C) an increase in the
popularity of leather jackets.
D) the expectation that
the price of leather jackets will fall in the future.
3 points
QUESTION 12
The law of supply states that, other things constant, there is
a(n) __________ relation between price and ______________.
A)...

The Law of Supply states the relationship between price and
quantity of a good supplied, then (Ceteris Paribus) an increase in
market price will lead to?

According to the law of demand an increase in the price of
Pepsi will (ceteris paribus):
A) increase the
quantity demanded of Pepsi.
B) decrease the
quantity demanded of Pepsi.
C) increase the demand
for Pepsi.
D) decrease the demand
for Pepsi.
3 points
QUESTION 7
A change in the demand for beef will most likely be
caused by a change in the:
A) price of beef.
B) price of pork.
C) cost of producing
beef
D) technology used...

A regression analysis between quantity demanded (y in kg ) and
price (x in dollars) of apples resulted in the equation ŷ = 28 -
3x. The estimated regression equation implies that:

Consider the following sample regression equation yˆy^ = 240 +
10x, where y is the supply for Product A (in
1,000s) and x is the price of Product A (in $). If the
price of Product A increases by $3, then we expect the supply for
Product A to ________.
a) increase by 30
b) decrease by 30
c) increase by 30,000
d) decrease by 30,000

If a 7 percent increase in the price of a commodity results in
a 12 percent increase in the quantity supplied, supply is said to
be
Group of answer choices
perfectly elastic.
elastic.
unit elastic.
inelastic.
perfectly inelastic.

1.
The law of demand states that:
a)
There is a direct or positive relationship between the price of a
commodity and the quantity demanded.
b)
The quantity demanded will be higher the lower is its price.
c)
The quantity demanded will be lower the lower is its price.
d)
The quantity demanded will be higher the higher is its price.
2.
The law of supply states that:
a)
There is a direct or positive relationship between the quantity
supplied...

1) A regression analysis between demand (y in 1,000
units) and price (x in dollars) resulted in the following
equation.
ŷ = 8 − 5x
The above equation implies that if the price is increased by $1,
the demand is expected to
a) increase by 3 units. b) decrease by 5 units. c)
decrease by 5,000 units. d)decrease by 3,000 units.
2) The following information regarding a dependent variable
(y) and an independent variable (x) is
provided.
y
x...

4) The regression equation predicting the average weight of a
male age 18=24 (y) based on his height (x) is giben by y=
172.63+4.842x. Describe the correlation between height and weight
based on the slop of the regression line.
a) positive correlation since the magnitude of the slope is
large relative to the intercept.
b) negative correlation since the magnitude of the slope is
small relative to the intercept.
c) positive correlation since the slope is positive. d) positive
correlation...

In the short run, the industry supply curve is the sum of the
positively-sloped portions of the member firms' average cost
schedules.
A) True
B) False
Figure and Table: The Changing Slope of an Indifference
Curve
Consumption bundle
Quantity of rooms
Quantity of restaurant meals
V
2
30
W
3
20
X
4
15
Y
5
12
Z
6
10
50. (Figure and Table: The Changing Slope of an Indifference
Curve) When going from bundle W to bundle X, there...

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