Final answer:
The coefficient of the variable 'price' indicates that for each one-unit increase in price, sales are expected to decrease by 1,524 units, assuming all other factors remain constant. This reflects the law of demand under the ceteris paribus condition.
Step-by-step explanation:
Interpreting the coefficient of the variable 'price' in an economic context, we can understand the impact that price changes have on sales. The statement implies that a one-unit increase in price will result in a decrease of 1,524 units in sales, holding all other independent variables constant, under the assumption of ceteris paribus. An increase of 100 units in price will result in the same decrease in sales (1,524 units), assuming that the relationship between price and sales is linear and that each additional unit increase in price always decreases sales by 1,524 units.
This economic relationship is tied to the law of demand, which states that, assuming all else is equal, as the price of a good or service increases, the quantity demanded decreases, and vice versa. The ceteris paribus assumption is crucial as it allows to isolate the effect of price changes on sales while controlling for other factors. The coefficient of the variable 'price' in this context indicates the relationship between the price per unit and the decrease in sales, while holding all other independent variables constant. In this case, as the price per unit is increased by 1, sales are expected to decrease by 1,524, and if the price per unit is increased by 100, sales are expected to decrease by the same amount. This implies that for every $1 increase in price, sales are expected to decrease by 1,524 units.