Identify the cause and effect relationship in the model

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Reference no: EM132197745

Question: Suppose that we have a simple economics model that shipper demands to transportation services depend upon the transportation rate charged.

i. Identify the cause and effect relationship in this model.

ii. Why is this model a qualitative model of shipper demands?

iii. How would you transform this economic model into an econometric model of shipper demands?

iv. In your econometric model, how would you test the hypothesis that demand depends upon transportation rate charged?

Reference no: EM132197745

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