Multiple Choice
When estimating a demand function for a good where quantity demanded is a linear function of the price, you should
A) not include an intercept because the price of the good is never zero.
B) use a one-sided alternative hypothesis to check the influence of price on quantity.
C) use a two-sided alternative hypothesis to check the influence of price on quantity.
D) reject the idea that price determines demand unless the coefficient is at least 1.96.
Correct Answer:

Verified
Correct Answer:
Verified
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