List all the influences on buying plans that change demand, and for each influence, say whether it increases or decreases demand
What will be an ideal response?
Influences that change the demand for a good include:
• The prices of related goods. A rise (fall) in the price of a substitute increases (decreases) the demand for the first good. A rise (fall) in the price of a complement decreases (increases) the demand for the first good.
• The expected future price of the good. A rise (fall) in the expected future price of a good increases (decreases) the demand in the current period.
• Income. An increase (decrease) in income increases (decreases) the demand for a normal good. An increase in income decreases (increases) the demand for an inferior good.
• Expected future income and credit. An increase (decrease) in expected future income or credit increases (decreases) the demand.
• The population. An increase (decrease) in population increases (decreases) the demand.
• People's preferences. If people's preferences for a good rise (fall), the demand increases (decreases).
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To obtain the slope estimator using the least squares principle, you divide the
A) sample variance of X by the sample variance of Y. B) sample covariance of X and Y by the sample variance of Y. C) sample covariance of X and Y by the sample variance of X. D) sample variance of X by the sample covariance of X and Y.
The value of Austria's exports minus the value of Austria's imports is called
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