Beef Price Source

Question 28:

The regression analysis at the bottom relates average annual per capita beef consumption (in pounds) and the independent variables “annual per capita pork consumption” (in pounds) and “average annual beef price” (in dollars per pound).

The coefficient for beef price, -12, tells us that:

Beef Consumption, Pork Consumption, and Beef Price Source

For every $1 increase in beef price, average beef consumption decreases by 12 lbs, not controlling for pork consumption.

For every $12 drop in beef price, average beef consumption decreases by 1 lbs, not controlling for pork consumption. For every $1 increase in beef price, average beef consumption decreases by 12 lbs, controlling for pork

consumption, i.e. holding pork consumption constant.

For every $12 decrease in beef price, average beef consumption decreases by 1 lbs, controlling for pork consumption, i.e. holding pork consumption constant.