Question: The estimated demand curve for popsicles on a particular beach
The estimated demand curve for popsicles on a particular beach on a sunny summer day is given by Q = 130 – 3.5p, where p is measured in dollars. What is the predicted quantity if p = $ 2.00. If the actual quantity demanded is 129, what is the residual? Suggest at least two unobserved variables incorporated in the random error.
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