Use the High Closing Values of Naristar Inc $x = 0$

question 29

Essay

Use the high closing values of Naristar Inc. stock from the years 1992 - 2003 to constru time-series graph. (Let $x = 0$ represent 1992 and so on.) Identify a trend.

$\begin{array}{c|c|c|c}\text { Year } & \text { High } & \text { Year } & \text { High } \\\hline 1992 & 48 & 1998 & 62 \\1993 & 53 & 1999 & 60 \\1994 & 47 & 2000 & 68 \\1995 & 55 & 2001 & 42 \\1996 & 58 & 2002 & 51 \\1997 & 61 & 2003 & 78\end{array}$

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Definitions:

Demand Elasticity

A quantification of the effect of price variation on the demand level for a specific good.

Income Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in consumers' income.

Inferior Good

A type of good whose demand decreases when consumer income rises, unlike normal goods, which see an increase in demand with rising income.

Income Elasticity

A measure of how much the quantity demanded of a good responds to a change in consumers' income.