Question: P X = $9500P Y = $10000I = $15000A = $170000W = 160 This function is: Qs = 89830 -40P S +20P X +15P Y

P_X = $9500P_Y = $10000I = $15000A = $170000W = 160

This function is:

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

Calculate the point price elasticity of demand at P_S = $9000(which should make Q_S = 101600).Does this elasticity (E) value indicate that Smooth Sailing boat demand is relatively responsive to Smooth Sailing boat price changes?Explain why or why not. The formula is E=(dQs/dPs)*(Ps/Qs)

Calculate the point weather elasticity of demand with W = 160.Use Qs corresponding to Ps = 9000. Other variables and their values are as given at the top, before question #1.Does this elasticity indicate that the demand for Smooth Sailing's boats is relatively responsive to changes in the number of favorable weather days?Explain why or why not. The formula is E=(dQs/W)*(W/Qs)

Calculate the point income elasticity of demand, given that I = $170,000 and that P_S = $8500 (thus Q_S should equal 431,600).Other variables are as given at the top before #1.Does this elasticity indicate that the demand for Smooth Sailing boats is relatively responsive to changes in income?Explain why or why not. The formula is E=(dQs/I)*(I/Qs)

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