The demand for pizzas in a large town is written as: Q_d = 120 - 10P + 5P_b - 0.5P_s - 10Y,where Q_d is the quantity demanded,P is the price,P_b is the price of burritos,P_sis the price of soft drinks sold in the pizza restaurants,and Y is personal income per month (in thousand dollars).What is ∆Q/∆Ps?

Question

Quizplus · Accepted Answer

The term $\Delta Q/\Delta P_s$ refers to the partial derivative of the quantity demanded with respect to the price of soft drinks ($P_s$). In the given demand equation, the coefficient of $P_s$ (price of soft drinks) is -0.5, indicating that for every one unit increase in the price of soft drinks, the quantity demanded of pizzas decreases by 0.5 units.

The Demand for Pizzas in a Large Town Is Written