Lectures in Microeconomics-Charles W. Upton Estimating Demand Functions

Q P

Q P

Q P

Q P

Q P 33 22 11

Q P 33 22 11    2 3

Estimating Demand Functions Q P D

Q P D S S S

Q P S DD D Estimate a Demand Curve, get a Supply Curve

Estimating Demand Functions Q P S S S DD D

Q P S S S DD D

Q P S S S DD D GIGO!

Estimating Demand Functions Q P D Cola D Coke, Prices Equal

Estimating Demand Functions Q P D Cola D Coke, Prices Equal

Estimating Demand Functions Q P D Cola D Coke, Prices Equal

Estimating Demand Functions Q P D Cola D Coke, Prices Equal There are statistical (or econometric) methods for addressing all of these issues, but they are complicated and fraught with the potential for error.

Estimating Demand Functions Q P D Cola D Coke, Prices Equal Often they require more data than you are likely to have available.

Estimating Demand Functions Q P D Cola D Coke, Prices Equal Think

Estimating Demand Functions End ©2003 Charles W. Upton