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

Multiple Choice

A regression analysis linking demand (y in 1000 units) and price (x in $) resulted in the following equation: estimated Y = 9 - 3x.This equation implies that if the price is decreased by $1, demand can be expected to:

A) increase by 9,000 units
B) decrease by 9,000 units
C) decrease by 3,000 units
D) increase by 3,000 units
E) none of the above