An estimated demand curve does NOT necessarily match actual data perfectly because
A) it is not possible to accurately calculate the coefficients of the curve.
B) some factors that are not measured or observed may affect the curve.
C) the random error term has too large of a range.
D) demand is unpredictable.
B
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A tariff is a
A. tax. B. price ceiling. C. subsidy. D. quantity limit.
So we can see that an increase in government spending will raise the level of economic equilibrium, while a decrease in government spending will lower it
What will be an ideal response?
Which of the following is a component of a competitive market?
a. a buyer having significant market power b. buyers boycotting similar products c. sellers offering a wide variety of products d. a seller having little market power
An increase in the supply of dollars and a decrease in the demand for Mexican peso
A. increases the peso price of dollars. B. increases the value of the peso. C. increases the value of the dollar. D. has an indeterminate effect on the exchange rate between dollars and pesos.