Regression Analysis 149
FIGURE 4.2
Shifts in Supply and
Demand
The scatter of points in
parts (a) and (b) is
caused by shifts in
both supply and
demand. To estimate a
demand curve, as in
part (c), shifts in supply
are crucial.
D D
D
S S S
Quantity
(a)
Quantity
(b)
Regression
line
Price
Price
Price
D
S S S
Quantity
(c)
c04EstimatingandForecastingDemand.qxd 9/5/11 5:49 PM Page 149