If we have estimated a demand function, a problem we will meet in using the function to forecast demand will be the reliability of the

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The reliability of the demand function itself (A) and the forecasts of changes in the independent variable(s) (C) are both crucial for accurate demand forecasting. If the demand function is not reliable, or if the forecasts for the independent variables (such as price, income, etc.) are inaccurate, the overall demand forecast will be compromised.

If We Have Estimated a Demand Function, a Problem We