Please show work so i can learn how this was done. Thank you.
5. If supply increases and demand also increases, we can conclude that the new equilibrium:
The multivariate demand function (below) is needed for questions 6 â 12.
Setting: U.S. Auto manufacturers are trying to develop a multivariate function with which to estimate the demand for their gas-electric hybrid compact cars. Here is one that Motors General developed for its Jolt:
Qj = 65000 â 20Pj + 20Pf + 35Pt â 5Pb + 0.2Tc + 0.05Y + 10Mg + 0.04A
Where:
Qj = the number of Jolts demanded per week.
Pj = the price of each new Jolt (in $).
Pf = the price of each new Ford gas-electric hybrid (in $).
Pt = the price of each new Toyota gas-electric hybrid (in $).
Pb = the price of replacement batteries for the Jolt (in $).
Tc = the amount of tax credit incentive offered with the purchase of a new hybrid (in $).
Y = average weekly disposable income of a typical Jolt purchaser (in $).
Mg = the miles per gallon of gas rating of the Jolt (in miles per gallon).
A = average weekly Jolt advertising expenditure (in $).
6. If all variables remain unchanged except that the price of Jolts (Pj) increases by $1000, then the quantity demanded of Jolts will:
7. If all variables remain unchanged except that the average weekly disposable income (Y) increases by $350 then demand for Jolts will:
8. You can tell by looking at the sign of the price of Toyota hybrids (Pt) that they are considered:
Please show work so i can learn how this was done. Thank you.
5. If supply increases and demand also increases, we can conclude that the new equilibrium:
The multivariate demand function (below) is needed for questions 6 â 12.
Setting: U.S. Auto manufacturers are trying to develop a multivariate function with which to estimate the demand for their gas-electric hybrid compact cars. Here is one that Motors General developed for its Jolt:
Qj = 65000 â 20Pj + 20Pf + 35Pt â 5Pb + 0.2Tc + 0.05Y + 10Mg + 0.04A
Where:
Qj = the number of Jolts demanded per week.
Pj = the price of each new Jolt (in $).
Pf = the price of each new Ford gas-electric hybrid (in $).
Pt = the price of each new Toyota gas-electric hybrid (in $).
Pb = the price of replacement batteries for the Jolt (in $).
Tc = the amount of tax credit incentive offered with the purchase of a new hybrid (in $).
Y = average weekly disposable income of a typical Jolt purchaser (in $).
Mg = the miles per gallon of gas rating of the Jolt (in miles per gallon).
A = average weekly Jolt advertising expenditure (in $).
6. If all variables remain unchanged except that the price of Jolts (Pj) increases by $1000, then the quantity demanded of Jolts will:
7. If all variables remain unchanged except that the average weekly disposable income (Y) increases by $350 then demand for Jolts will:
8. You can tell by looking at the sign of the price of Toyota hybrids (Pt) that they are considered:
