How has the product demand varied in response to change in this scenario? Unseasonal rains damaged this year's potato harvest, causing a sharp shortage in supply. This caused the price of potatoes to
increase from $1per pound to $5 per pound. However, the quantity bought by people did not decrease significantly. In this case,
demand for potatoes is
The study of demand was done using
that involved computing
volumes sold at different locations at the same time.

Agood for which demand increases as income rises is and a good for which demand increases as income falls is

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.