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Analyze the demand function for Toyotas This function is: QT = 200 -.01PT +.005PM -10Pc +.011 +.003A 1. Characterize this function by circling all in
Analyze the demand function for Toyotas This function is: QT = 200 -.01PT +.005PM -10Pc +.011 +.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 the price of gasoline (PG) (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 income (I) (the numerical value of this coefficient is +.01, but the answer you give is to be the symbol representing this partial derivative). 4. Assuming there is a $100 decrease in income (1), what change in Toyota demand QT will result (an increase or decrease and also give the numerical value of it, too)? 5. Is gasoline a substitute for or complementary to Toyotas? What feature of the function tells you? 6. Are Mazdas substitutes for or complements to Toyotas? What feature of the function tells you? 7. Is a Toyota a normal or an inferior good? What feature of the function tells you? 8. Assuming there is a $1000 Toyota price (Pr) decrease, what change in Toyota's quantity demanded QT will result (an increase or decrease and also give the numerical value of it, too)? 9. Assuming there is a $1000 decrease in average family income (1), what change in Toyota demand will result (an increase or decrease and also give the numerical value, too)? 10. Assuming there is a $500 decrease in the price of Mazdas (PM), what change in Toyota demand Qr will result (an increase or decrease and also give the numerical value of it too)
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