Question
Please help needed with this. Analyze the demand function :Q L = 3536 - .5P L + .2P C + .008I + .0001A 1.Characterize this
Please help needed with this.
Analyze the demand function :QL= 3536 - .5PL+ .2PC+ .008I + .0001A
1.Characterize this function by circling all in the following list that are applicable:
univariate, bivariate, multivariate, linear, exponential, logarithmic, curvilinear, 1st degree, 2nd degree, 3rd degree, additive, multiplicative, linearly homogeneous
2.What is the numerical value of the partial derivative of the function with respect to income (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 advertising (the numerical value of this coefficient is +.0001, but the answer you give is to be the representing this partial derivative).
4.Assuming there is a $200 increase in the price of Paradise Lake lots (PL), what change in quantity demanded of Paradise Lake lots will result (give the numerical value of it, too).
5. Are Paradise Lake lots a normal or an inferior good?What feature of the function tells you?
6.Explain in words what the intercept (which is 3536) includes (or does not include).
7.Is there a direct or is there an inverse relationship between demand for lots (QL) and advertising expenditures (A)?What feature of the function tells you?
8.How will demand for Paradise Lake's lots (QL) change in response to a $1000 decrease in the price of competing lots (Pc) (give the numerical value of it, too)?
9.How will demand for Paradise Lake's lots change in response to a $1000 decrease in income (I) (give the numerical value of it, too)?
10.What variable do I need to change in order to achieve a change in the quantity demanded (QL) of Paradise Lake lots?
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