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You and your team are interested in predicting home prices in a city based on a variety of features of the house (e.g. square footage, acreage, number of bedrooms, etc.). One of your analyst suggests this may be difficult because we don’t understand very well the causal relationship between house features and the price of the house. He asks whether the team should proceed with the analysis.
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Absolute value of elasticity along a linear demand curve decreases from left to right.
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