A Research scholar researching the market for fresh cow milk assumes that Qt =f(Pt, Y, A, N, Pc) where Qt is the quantity of milk demanded, Pt is the price of fresh cow milk, Y is average household income, A is advertising expenditure on processed pocket milk, N is population and Pc is the price of processed pocket milk.
(a) What does Qt = f (Pt, Y, A, N, Pc) mean in words?
(b) Identify the 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.)
