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Many factors affect the demand for a product, which is a concern for management and the decision-making process. To correctly assess the demand for their products, managers must determine the effect of all relevant variables. Select a particular industry or product and define the following variables:
    Inferior versus normal goods
    Substitution and income effects
    Derived demand
    Changes in real and projected incomes
Discuss how these variables can affect the demand for your product or industry and what methods could be used to estimate the effect of these variables

 

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