Analyze the demand function for Paradise Lake's properties in problem C5, page 83.Please also read "What is a Symbol" located in the folder with this assignment.

This function is:

Q_L= 3536 - .5P_L+ .2P_C+ .008I + .0001A

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

univariate, bivariate, multivariate, linear, exponential, logarithmic, curvilinear, 1^st degree, 2^nd degree, 3^rd degree, additive, multiplicative, linearly homogeneous

2.What is the numerical value of the partial derivative of the function with respect to advertising expenditures (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 competing lots (the numerical value of this coefficient is +.2, but the answer you give is to be the symbol representing this partial derivative).

4.Assuming there is a $1 increase in the price (P_C) of competing lots, what change in demand for Paradise Lake lots will result (give the numerical value of it, too).

5. Are competing lots a substitute for or complementary to Paradise Lake's lots?What feature of the function tells you?

6.Explain in words what the intercept (which is 3536) includes (or does not include).

7.Are Paradise Lake's lots normal or inferior goods?What feature of the function tells you?

8.How will demand for Paradise Lake's lots change in response to a $10000 decrease in your advertising budget (A) (give the numerical value of it, too)?

9.How will demand for Paradise Lake's lots change in response to a $1000 increase in the price (P_C) of competing lots (give the numerical value of it, too)?

10.How will the demand for Paradise Lake lots change in response to a $10000 increase in income (I) (give the numerical value of it, too)?