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Forecast 2008 sales for Reliable given that its aircraft prices will increase by $500 from 2007 levels and that disposable personal income will increase by
Forecast 2008 sales for Reliable given that its aircraft prices will increase by
$500 from 2007 levels and that disposable personal income will increase by
$40 billion. Assume that the price and income effects are independent and
additive and that the arc income and price elasticities computed in parts (a)
and (b) are the best available estimates of these elasticities to be used in making
the forecast.
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