Analyze the demand function for Toyotas in problem C4, page 82. Please also read “What is a Symbol” located in the folder with this assignment. This function is: QT = 200 -.01PT +.005PM -10PG +.01I +.003A Where: QT = quantity purchased PT = average price of Toyotas PM = average price of Mazdas PG = price of gasoline I = per capita income A = dollars spent annually on advertising Characterize this function by circling all in the following list that are applicable: univariate, bivariate, multivariate, linear, exponential, logarithmic, curvilinear, 1st degree, 3rd degree, additive, multiplicative, linearly homogeneous What is the numerical value of the partial derivative of the function with respect to the price of gasoline (PG) (be sure to also include the + or – sign. Note: I do not want the symbol for this partial derivative)? Write the mathematical symbol representing the coefficient of income (I) (the numerical value of this coefficient is +.01, but the answer you give is to be the symbol representing this partial derivative). Assuming there is a $1 increase in income (I), what change in Toyota demand will result (give the numerical value, too)? Is gasoline a substitute for or complementary to Toyotas? What feature of the function tells you? Are Mazadas substitutes or complements to Toyotas? What feature of the function tells you? Is a Toyota a normal or an inferior good? What feature of the function tells you? Assuming there is a $1000 Toyota price (PT) increase, what change in Toyota’s quantity demanded will result (give the numerical value, too)? Assuming there is a $1000 decrease in average family income (I), what change in Toyota demand will result (give the numerical value, too)? Assuming there is a $1000 increase in the price of Mazdas (PM), what change in Toyota demand will result (give the numerical value of it too)?

Analyze the demand function for Toyotas in problem C4, page 82. Please also read “What is a Symbol” located in the folder with this assignment. This function is: QT = 200 -.01PT +.005PM -10PG +.01I +.003A Where: QT = quantity purchased PT = average price of Toyotas PM = average price of Mazdas PG = price of gasoline I = per capita income A = dollars spent annually on advertising Characterize this function by circling all in the following list that are applicable: univariate, bivariate, multivariate, linear, exponential, logarithmic, curvilinear, 1st degree, 3rd degree, additive, multiplicative, linearly homogeneous What is the numerical value of the partial derivative of the function with respect to the price of gasoline (PG) (be sure to also include the + or – sign. Note: I do not want the symbol for this partial derivative)? Write the mathematical symbol representing the coefficient of income (I) (the numerical value of this coefficient is +.01, but the answer you give is to be the symbol representing this partial derivative). Assuming there is a $1 increase in income (I), what change in Toyota demand will result (give the numerical value, too)? Is gasoline a substitute for or complementary to Toyotas? What feature of the function tells you? Are Mazadas substitutes or complements to Toyotas? What feature of the function tells you? Is a Toyota a normal or an inferior good? What feature of the function tells you? Assuming there is a $1000 Toyota price (PT) increase, what change in Toyota’s quantity demanded will result (give the numerical value, too)? Assuming there is a $1000 decrease in average family income (I), what change in Toyota demand will result (give the numerical value, too)? Assuming there is a $1000 increase in the price of Mazdas (PM), what change in Toyota demand will result (give the numerical value of it too)?

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...

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Analyze the demand function for Toyotas in problem C4, page 82. Please also read “What is a Symbol” located in the folder with this assignment.

This function is:

Q_T = 200 -.01P_T +.005P_M -10P_G +.01I +.003A

Where:

QT = quantity purchased

PT = average price of Toyotas

PM = average price of Mazdas

PG = price of gasoline

I = per capita income

A = dollars spent annually on advertising

Characterize this function by circling all in the following list that are applicable:

univariate, bivariate, multivariate, linear, exponential, logarithmic, curvilinear, 1^st degree, 3^rd degree, additive, multiplicative, linearly homogeneous

What is the numerical value of the partial derivative of the function with respect to the price of gasoline (P_G) (be sure to also include the + or – sign. Note: I do not want the symbol for this partial derivative)?

Write the mathematical symbol representing the coefficient of income (I) (the numerical value of this coefficient is +.01, but the answer you give is to be the symbol representing this partial derivative).

Assuming there is a $1 increase in income (I), what change in Toyota demand will result (give the numerical value, too)?

Is gasoline a substitute for or complementary to Toyotas? What feature of the function tells you?

Are Mazadas substitutes or complements to Toyotas? What feature of the function tells you?

Is a Toyota a normal or an inferior good? What feature of the function tells you?

Assuming there is a $1000 Toyota price (P_T) increase, what change in Toyota’s quantity demanded will result (give the numerical value, too)?

Assuming there is a $1000 decrease in average family income (I), what change in Toyota demand will result (give the numerical value, too)?

Assuming there is a $1000 increase in the price of Mazdas (P_M), what change in Toyota demand will result (give the numerical value of it too)?

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