Exhibit 16.2.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 Excel output illustrates this rather unusual relationship. Refer to Exhibit 16.2.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

Exhibit 16.2.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 Excel output illustrates this rather unusual relationship.  Refer to Exhibit 16.2.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 Exhibit 16.2.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 Excel output illustrates this rather unusual relationship.  Refer to Exhibit 16.2.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