Suppose the demand for Digital Video Recorders (DVRs)is given by Q = 250 - .25p + 4pc,where Q is the quantity of DVRs demanded (in 1000s),p is the price of a DVR,and pc is the price of cable television.How much does Q change if the price of cable changes slightly (i.e.the partial derivative of demand with respect to pc
A) 125
B) 4.25
C) 4
D) .25

Question

Quizplus · Accepted Answer

To find how much Q changes with respect to pc, we need to take the partial derivative of Q with respect to pc.

∂Q/∂pc = 4

This means that for every $1 increase in the price of cable television, the quantity of DVRs demanded will decrease by 4 (in 1000s). Therefore, the best choice is C) 4.

Suppose the Demand for Digital Video Recorders (DVRs)is Given by Q