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Unformatted text preview: (E) If you were hired as a consultant to predict industrial demand for water in Southern California by 2008, which type of demand function would you employ, and why? Question #2 What, if anything, is wrong with the input requirements approach to forecasting the industrial demand for water? Are there circumstances under which it would be reasonable, at least as an approximation? Question #3 (A) What are some of the ways in which changes in regulations could affect the demand for water in an industry? (B) What are some of the ways in which technical change could affect the demand for water in an industry? (C) What are some of the practical implications for water policy of an empirical finding that water and capital are complements or substitutes? Which does the empirical evidence actually suggest?...
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This note was uploaded on 08/01/2008 for the course ECON 162 taught by Professor Hanemann during the Spring '07 term at University of California, Berkeley.
- Spring '07