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Big Poppa's BBQ Sandwiches Is a Local Restaurant Specializing in BBQ

Question 4

Multiple Choice

Big Poppa's BBQ Sandwiches is a local restaurant specializing in BBQ sandwiches. Using Excel, Big Poppa's estimates the weekly demand function for its BBQ sandwiches to be Qd = 1,576.55 - (25.50 × P) . The estimated regression equation suggests which of the following is true?


A) As the price of Big Poppa's BBQ sandwiches increases, the quantity demanded also increases.
B) There is a negative relationship between the price of Big Poppa's BBQ sandwiches and the quantity demanded.
C) The Law of Demand does not hold for Big Poppa's BBQ Sandwiches.
D) If Big Poppa's increased its price by $1, the quantity demanded would increase by 25.50.

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