Typically, the sales volume declines with an increase of a product price. It has been observed, however, that for some luxury goods the sales volume may increase when the price increases. The following scatterplot illustrates this rather unusual relationship. Which of the following models is most likely to be chosen in order to describe the relationship between Price and Sales?
A) Linear
B) Quadratic
C) Cubic
D) Exponential

Question

Typically, the sales volume declines with an increase of a product price. It has been observed, however, that for some luxury goods the sales volume may increase when the price increases. The following scatterplot illustrates this rather unusual relationship.  Which of the following models is most likely to be chosen in order to describe the relationship between Price and Sales?
A) Linear 
B) Quadratic 
C) Cubic 
D) Exponential

Quizplus · Accepted Answer

The Answer of Typically, the sales volume declines with an increase of a product price. It has been observed, however, that for some luxury goods the sales volume may increase when the price increases. The following scatterplot illustrates this rather unusual relationship.  Which of the following models is most likely to be chosen in order to describe the relationship between Price and Sales?
A) Linear 
B) Quadratic 
C) Cubic 
D) Exponential

Typically, the Sales Volume Declines with an Increase of a Product