Question

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?

Answer 1

Answer: 4000

Step-by-step explanation:

Q=250 - .25P +4Pc, where Q is the quantity of DVR

We want to find the partial derivative of Q with respect to Pc

(dQ/dPc,partial) = 4

There is a change of 4 DVR added. Since the Q is measured in Thousands.

∆Q = 4000

Differentiation Q with respect to Pc gives other terms to be zero except wrt Pc.