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Refer to the Following Equation: Qs = β\beta 1 β\beta 2P

Question 12

Multiple Choice

Refer to the following equation: Qs = β\beta 1 + β\beta 2P + β\beta 3Pr + β\beta 4Ps + β\beta 5TAX + e
Where Qs is annual quantity supplied,P is the price of the product,Pr is the price of resources,Ps is the price of goods that are substitutes in production,and TAX is the excise tax on the product.This equation is


A) an economic model
B) an econometric model
C) a market model
D) a non-linear model

Correct Answer:

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