Law of Supply: The Law of Supply states that an increase in price will result in an increase in the quantity supplied (a

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Law Of Supply The Law Of Supply States That An Increase In Price Will Result In An Increase In The Quantity Supplied A 1 (80.21 KiB) Viewed 65 times

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. Supply Data Price -vs- Supply: x = Price per item in dollars) y = Supply (Quantity Supplied) 1200 1000 correlation coefficient: r = 0.919 800 regression equation: ý = 121.6lx - 123.9 Quantity Supplied 600 sample size: n = 12 400 200 0 0 2 4 6 8 10 12 Price per item in dollars) Answer the following questions regarding the relationship between price (x) and supply (v). (a) What is the y-intercept of the regression equation? O-123.9 0.919 O 121.61 O 12 (b) If the price is set at $1.00, use the regression equation to predict the quantity supplied. Your answer may not make any sense at all. That's alright. Round your answer to the nearest whole number. Û = units (c) Which statement(s) are valid for this situation? The estimate from part (b) won't actually happen. The regression equation is not valid for very low prices. Supply will most likely stop before the price drops below one dollar. O All of these are valid statements.