The table above shows a sample of actual data used to estimate the demand function for Happy Clams seafood dinners. -Refer to the table above. Excel estimates the demand function for Happy Clams seafood dinners to be: Q^d = 1,200 - (20.50 × P). Which of the following statements is true? A)When the price is equal to $18, the actual quantity sold exceeds the predicted quantity sold. B)When the price is equal to $18, the estimated residual is zero. C)When the price is equal to $18, the predicted quantity sold exceeds the actual quantity sold. D)When the price is equal to $18, the actual quantity sold equals the predicted quantity sold.

Question

Quizplus · Accepted Answer

When the price is $18, the predicted quantity sold is Q^d = 1,200 - (20.50 × 18) = 831. The statement implies that the predicted quantity sold exceeds the actual quantity sold.

The Table Above Shows a Sample of Actual Data Used