A Regression Analysis Linking Demand (Y in 1000 Units) to Price

Multiple Choice

A regression analysis linking demand (y in 1000 units) to price (x₁ in dollars) and advertising (x₂ in $1000s) resulted in the following equation: estimated Y = 9 - 5x₁ + 2x₂.This equation implies that a $1 increase in price can be associated with a ____ in demand.

A) 9000 - 5000 = 4000 unit increase
B) 9000 unit decrease
C) 9000 + 5000 = 14,000 unit decrease
D) 5,000 unit decrease
E) none of the above