Problem
An economist researching the market for tea assumes that
Qt = f(Pt, Y, A, N, Pc)
where Qt is the quantity of tea demanded, Pt is the price of tea, Y is average household income, A is advertising expenditure on tea, N is population and Pc is the price of coffee.
(a) What does Qt = f(Pt, Y, A, N, Pc) mean in words?
(b) Identify the dependent and independent variables.
(c) Make up a specific form for this function. (Use your knowledge of economics to deduce whether the coefficients of the different independent variables should be positive or negative.)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.