If the Demand for Digital Cameras Increases When Consumers' Income

question 469

Multiple Choice

If the demand for digital cameras increases when consumers' income rise, then digital cameras are

• A) a normal good.
• B) an inferior good.
• C) a substitute good for video cameras.
• D) a complement to video cameras.

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Definitions:

Regression Models

Statistical methods used to estimate the relationships among variables, often to predict a particular outcome.

Trend Projection

A forecasting technique that uses historical data to predict future outcomes by identifying patterns or trends.

Causal Forecasting

A forecasting method that assumes the demand in future periods will be influenced by identifiable factors and uses statistical models to predict outcomes.

Weighted Moving Average

A calculation that averages a series of values while giving different weights to different values, often used in financial analysis to smooth data.