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Ql = 3,536 - 0.5Pl + 0.2Pc + 0.008I + 0.0001A
Ql= the number of Paradise Lakes lots purchased per year Pl= the price of a Paradise Lakes lot Pc= the price of a competing land companys lots I=average annual household income A=the annual amount spent by Paradise Lake on advertising
1. How will demand for Paradise Lake’s lots change in response to a $10000 decrease in your advertising budget (give the numerical value of it, too)?
2. How will demand for Paradise Lake’s lots change in response to a $1000 increase in the price of competing lots (give the numerical value of it, too)?
3. How will the demand for Paradise Lake lots change in response to a $10000 increase in income (give the numerical value of it, too)?
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