Please show the work on how you solved the problems, so that I may understand.
The multivariate demand function (below) is needed for questions 6 - 12. 9. The partial derivative of the demand for Jolts with respect to the price of Jolts (Pj) is one of Setting: U.S. Auto manufacturers are trying to develop a multivariate function with which to the following: -2 -5 +.04 +10 +20 +35 estimate the demand for their gas-electric hybrid compact cars. Here is one that Motors General developed for its Jolt: 10. Enter the following values into your Jolt demand function (be very careful with the Qi = 65000 - 20Pj + 20Pf + 35Pt - 5Pb + 0.2Tc + 0.05Y + 10Mg + 0.04A calculation because the resulting quantity of Jolts demanded will be used in several questions Where to follow). Circle your answer on the answer sheet. Pj = $25000 Pf= $40000 Pt = $35000 Qi = the number of Jolts demanded per week. Pb = $5000 Pi_= the price of each new Jolt (in $). Pf = the price of each new Ford gas-electric hybrid (in $). To = $7000 Y = $1200 Mg = 55 A=$70000 Pt = the price of each new Toyota gas-electric hybrid (in $). Pb = the price of replacement batteries for the Jolt (in $). a. 1323055 Tc = the amount of tax credit incentive offered with the purchase of a new hybrid (in S). b. 1569810 Y = average weekly disposable income of a typical Jolt purchaser (in $). c. 1508000 Mg = the miles per gallon of gas rating of the Jolt (in miles per gallon). d. 1592950 A = average weekly Jolt advertising expenditure (in $). e. 1608495 f. 2264675 6. If all variables remain unchanged except that the price of Toyota hybrids (Pt) increases by $500, then the demand for Jolts will: a. decrease by 20000 11. What is the point cross-price elasticity of Jolt demand with respect to the Toyota price (Pt) b. decrease by 10000 . increase by 10000 The formula is: of $35000? Work out completely and show the sign (+ or -); carry out to 3 decimal places. d. increase by 20000 e. increase by 17500 E : f. decrease by 17500 ap, Q, -0.373 +0.000031 +0.529 9 +0.780 +0.85 +1.044 7. The Internal Revenue Service (IRS) decreases the amount of tax credit incentive offered (Tc) 12. What is the point elasticity of Jolt demand with respect to the advertising expenditure (A) of by $500. The manager of the advertising department should point out that demand for Jolts $70000. Work out completely and show the sign (+ or -); carry out to four decimal places. will: The formula is a. increase by 18 Jolts b. decrease by 17.5 Jolts E =- 0Q; A c. increase by 17.5 Jolts d. decrease by 18 Jolts 0.031 +0.0003 +0.0005 +0.0009 +0.0015 +0.002 e. increase by 100 Jolts f. decrease by 100 Jolts 8. If the sign of Toyota hybrids (Pt) were negative (-) instead of positive this would indicate that Toyota hybrids are being considered ( to Jolts. a. substitutes for Jolts b. complementary to Jolts c. normal goods d. inferior goods
