In an economic model that uses income to predict monthly expenditures on entertainment,what is the independent or explanatory variable?
A)income
B)monthly expenditures on entertainment
C)income elasticity
D)demand for entertainment

Question

Quizplus · Accepted Answer

In this economic model, income is the independent or explanatory variable because it is being used to predict monthly expenditures on entertainment. The monthly expenditures on entertainment are the dependent variable, meaning they are dependent on changes in income.

In an Economic Model That Uses Income to Predict Monthly