The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:
A) 1.0
B) their minimum values
C) their average values
D) 0.0
E) none of the above

Question

Quizplus · Accepted Answer

The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to 0.0. This means that there is no effect from any independent variable on the quantity demanded, and the intercept term captures the baseline level of demand without any outside factors affecting it.

The Constant or Intercept Term in a Statistical Demand Study