Analyze the demand function for Smooth Sailing sailboats provided in the pictures. 

This function is:

Qs = 89830 -40P_S +20P_X +15P_Y +2I +.001A +10W

1. Characterize this function by circlingall in the following listthat are applicable:

univariate, bivariate, multivariate, linear, exponential, logarithmic, curvilinear, 1^st degree, 2^nd degree, 3^rd degree, additive, multiplicative, linearly homogeneous

2. What is thenumerical value of the partial derivative of the function with respect the price of Company Y's motorboats (P_Y) (be sure to also include the + or - sign.Note: I do not want the symbol for this partial derivative)?

3. Write the mathematicalsymbol representing the coefficient of the number of favorable weather days (W). (the numerical value of this coefficient is +10, but the answer you give is to be thesymbol representing this partial derivative).

4. Assuming there is a 100 day increase in the number of favorable weather days (W), what change in demand for Smooth Sailing's sailboatsQs will result (an increase or decrease and also give the numerical value of it too)?

5. Are Y's motorboats a substitute for or complementary to Smooth Sailing sailboats? What feature of the function tells you?

6. Are Smooth Sailing sailboats a normal or an inferior 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 sailboatsQswill result (an increase or decrease and also give the numerical value, too)?

8. Assuming per capita income (I) decreases by $1000, what change in demand for Smooth Sailing's sailboatsQs will result (an increase or decrease and also give the numerical value of it, too)?

9. Assuming the price of X's sailboats (P_X)increases by $100, what change in demand for Smooth Sailing's sailboatsQs will result (an increase or decrease and also give the numerical value of it, too)?

10. Assuming the advertising expenditures on Smooth Sailing's sailboats (A)decreases by $3000, what change in demand for Smooth Sailing's sailboatsQs will result (an increase or decrease and also give the numerical value of it, too)?

Answer rating: 100% (QA)

Characterization of the demand function Multivariate The demand function includes multiple variables PS PX PY I A W Linear The demand function is line... View the full answer