Sales forecast modeling the change in the quantity of


Sales Forecast Modeling. The change in the quantity of product A demanded in any given week is inversely proportional to the change in sales of product B in the previous week. That is, if sales of B rose by X percent last week, sales of A can be expected to fall by X percent this week.

A. Write the equation for next week's sales of A, using the symbols A = sales of Product A, B = sales of Product B, and t = time. Assume there will be no shortages of either product.

B. Last week 500 units of A and 250 units of B were sold. Two weeks ago, 200 units of Product B were sold. What would you predict the sales of A to be this week?

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Econometrics: Sales forecast modeling the change in the quantity of
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