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 - 20Pj + 20Pf + 35Pt - 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 Ford's hybrid (Pf) decreases by $500, then the demand for Jolts will:

7.Economic conditions are recessive.Average weekly disposable income (Y) has decreased by $350.Thus demand for Jolts will:

8.If the sign of average weekly disposable income (Y) were negative (-), this would indicate that Jolts are considered:

9.The partial derivative of the demand for Jolts with respect to the price of Ford (Pf) hybrids is:

10.Enter the following values into your Jolt demand function (be very careful with the calculation because the resulting quantity of Jolts demanded will be used in several questions to follow).

Pj = $30000Pf = $40000Pt = $40000Pb = $12000

Tc = $12000Y = $900Mg = 45A = $15000

11.What is the point price elasticity of demand of Jolts with respect to the price (Pj) of $30000?Work out completely, also show the sign (+ or -), carry out to three decimal places.

12.What is the point elasticity of Jolt demand with respect to the tax credit (Tc) of $12000?Work out completely and show the sign (+ or -), carry out to four decimal places.