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Answer to Question #76557 in Economics for kelly
Question #76557
When estimating a demand function, explain why fitting a line of best fit through observed
price and quantity combinations over time is not likely to yield good estimates.
price and quantity combinations over time is not likely to yield good estimates.
Expert's answer
When estimating a demand function, fitting a line of best fit through observed price and quantity combinations over time is not likely to yield good estimates, because usually the demand curve is bowled in or out and is not linear, so a line of best fit can give incorrect information.
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#340153 on Dec 2023
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