If country i’s GDP increases by 5% , what is the percentage change of its import from country j approximately

The following function describes how the value of import of country i from country j, Fij is determined:

ln Fij = −14.44 + 0.852 ln Gi + 0.178 ln Gj − 1.119 ln Dij

,where Gi is GDP in country i, Gj is GDP in country j, and Dij is the distance between the two countries.Convince yourself that dx/x = d ln x measures the percentage change of x. Using derivatives to answer the following questions.

(a) If country i’s GDP increases by 5% , what is the percentage change of its import from country j approximately?

(b) If country j’s GDP decreases by 4% , what is the percentage change of country i’s import from country j approximately?

(c) If the distance between country i and j increases by 3% , what is the percentage change of country i’s import from country j approximately?