QT = 200 -.01PT +.005PM -10PG +.01I +.003A 1. 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
QT = 200 -.01PT +.005PM -10PG +.01I +.003A
1. 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
2. What is the numerical value of the partial derivative of the function with respect to advertising spending (be sure to also include the + or – sign. Note: I do not want the symbol for this partial derivative)?
3. Write the mathematical symbol representing the coefficient of the price of gas (the numerical value of this coefficient is -10, but the answer you give is to be the symbol for this partial derivative).
4. Assuming there is a $2 increase in the price of gasoline (PG), what change in Toyota demand QT
will result (an increase or decrease and also give the numerical value, too)?
5. Are Mazadas a substitute for or complementary to Toyotas? What feature of the function tells you?
6. The sign of the variable (I) is +. Suppose it were negative (that is -.01). What would the negative sign tell you about the type of good Toyotas are?
7. Glory be! Enough pipe lines have finally been constructed to carry significantly more oil from the Cushing, OK, petroleum exchange to refineries in Houston. As a result, the price of gasoline (PG) decreases by $1.00 per gallon. What change in Toyota demand QT will result (an increase or decrease and give the numerical value, too)?
8. The amount budgeted for Toyota advertising spending (A) is decreased by $50,000. What change in Toyota demand QT will result (an increase or decrease and also give the numerical value, too)?
9. Which will cause a greater influence on Toyota demand: a $400 decrease in the price of a Toyota (PT) or a $500 increase in the price of Mazada? Explain what items in the given function give you this information. Also give the amount of change in Toyota demand for each.
10. A change in the quantity demanded of Toyotas can only result from a change in which variable? Note: this is not asking what variable(s) cause a “change in demand for Toyotas”.
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