Understanding Linear Demand Functions and Economic Forecasting
School
The American School of Dubai**We aren't endorsed by this school
Course
SOC 315
Subject
Economics
Date
Dec 11, 2024
Pages
1
Uploaded by GrandPenguin4796
1. Which of the following equations best represents a linear demand function in economic forecasting?A) Qd = a + bP B) Qd = aP^2 + b C) Qd = a - bP^2 D) Qd = a/P + b 2. In an economic model, if the elasticity of demand is represented by the equation E = (dQ/dP) * (P/Q), what does a value of E < -1 indicate?A) Demand is elastic B) Demand is inelastic C) Demand is unitary elastic D) Demand is perfectly elastic 3. When forecasting future sales using a linear regression model, which of the following represents the dependent variable?A) The price of the product B) The quantity sold C) The advertising expenditure D) The time period 4. In an economic forecasting model, which of the following is an example of a variable that could be represented by a quadratic function?A) Total revenue as a function of price B) Unemployment rate as a function of time C) Profit maximization in relation to output level
