Chapter 7

Demand Estimation and Forecasting

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 Pricing Decisions

• Empirical demand functions

• Econometric price forecasts

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 Empirical demand function

• Demand equations derived from actual

market data

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 Fig. 7.1
The Nature of Simultaneity

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Fig. 7.2: Identification of Industry Demand

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Fig. 7.3: A Linear Trend Forecast

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Fig. 7.4: Forecasting Sales for Terminator
Pest Control

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Fig. 7.5: Sales with Seasonal Variation

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Fig. 7.6: The Effect of Seasonal Variation

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Fig. 7.7: Locating Future Industry Demand and
Supply

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Fig. 7.8: Confidence Intervals

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