9781118041581

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