Please see the ending. Some of these are similar. Setting: U.S. Auto manufacture

Question

Please see the ending. Some of these are similar.

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: Where Qi the number of Jolts demanded per week. Pi -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 S) Pb, the price of replacement batteries for the Jolt (in $) Te the amount of tax credit incentive offered with the purchase of a new hybrid (in $) Yaverage weekly disposable income of a typical Jolt purchaser (in S) Mg - the miles per gallon of gas rating of the Jolt (in miles per gallon) A = average weekly Jolt advertising expenditure (in $) X. 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) Circle your answer on the answer sheet. P?-830000 Pf-$45000 Pt-$55000 P5-$6000 Te = $10000 Y = $1500 Mg = 60 A =$50000 a. 1323055 b. 1569810 c. 1508000 d. 1592950 e. 1608495 f. 2264675

Explanation / Answer

Qj = 65000 – 20(30,000) + 20(45,000) + 35(55000) - 5(6,000) + 0.2(1,0000) + 0.05(1500) +10(60) + 0.04(50000)

= 65,000 – 6 000 00 +90 000 0 +1925000 – 30 000 + 2000 + 75 +600 + 2,000

=2264675

Hence right answer is (f)

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