DEMAND INTERPRETATON EXERCISE
Name
___________________________ Due
__________________
Analyze the demand function
for Smooth Sailing sailboats given on page 83.
Please also read “What is a Symbol” located in the folder with this
assignment.
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 the price
of Smooth Sailing’s sailboats (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 per capita income. (the numerical value of this coefficient is
+2, but the answer you give is to be the symbol representing this partial derivative).
4. Assuming the
price of Y’s motorboats decreases by $300, what change in demand for Smooth Sailing’s
sailboats will result (give the numerical value, too)?
5. Assuming the
price of X’s sailboats increases by $200, what change in demand for Smooth
Sailing’s sailboats will result (give the numerical value of it, too)?
6. Is X a substitute
or a complementary good? What feature of
the function tells you?
7. Assuming the
price of Y’s motorboats increases by $300, what change in demand for Smooth
Sailing’s sailboats will result (give the numerical value, too)?
8. Assuming per
capita income increases by $500, what change in demand for Smooth Sailing’s
sailboats will result (give the numerical value of it, too)?
9. If marketing
increases advertising expenditures by $10000, what change in demand for Smooth Sailing’s
sailboats will result (give the numerical value of it too)?
10. If the
number of favorable days of weather is forecast to decrease by seven days, what
change in demand for Smooth Sailing’s sailboats will result (give the numerical
value of it too)?
DemandInterp5.doc
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
