Using the data in the table and the least squares method, the demand relationship is:? = 8.08 − .49? + .81?.? = ? − ?? + ?𝐼The Statistical Approach to Demand Estimation
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44 of 50Price and quantity data can be used to determine the form of a demand relationship.But the same data could describe a single demand curve Dor three demand curves d1, d2, and d3 that shift over time.ESTIMATING DEMANDFIGURE 4.19