Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25 p + 4 pc, where Q is the quantity of DVRs demand

Question

4 years ago

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Suppose the demand for Digital Video Recorders (DVRs) is given by Q = 250 - .25 p + 4 pc, where Q is the quantity of DVRs demand

ed (in 1000s), p is the price of a DVR, and pc is the price of cable television. How much of a change in p must occur for Q to increase by one?

Physics

1 answer:

Alja [10] · Answer 1 · 2021-11-24T02:05:08+03:00

Answer:

Δp = -4 units

Explanation:

For calculating how the quantity of DVRs demanded changes, when the price is modified in one unit, we calculate the derivative of Q with respect to p

$Q = 250 - 0.25p + 4pc$

$\frac{dQ}{dp} = -0.25$

This means that when the price increases in one unit the quantity of DVRr demanded reduces in 0.25 units. Then the price must be reduced in 4 units for to obtain one unit more demanded.