-The demand for pizzas in a large town is written as: Qd = 120 - 10P + 5Pb - 0.5Ps - 10Y,where Qd is the quantity demanded,P is the price,Pb is the price of burritos,Ps is the price of soft drinks sold in the pizza restaurants,and Y is personal income per month (in thousand dollars) .If there is a $1,000 increase in personal income,how will the Qd change?

Question

Quizplus · Accepted Answer

The coefficient of Y in the demand equation is -10, indicating that for every 1 unit increase in Y (which is in thousands), Qd decreases by 10 units. Thus, a $1,000 increase in income (1 unit increase in Y) will decrease Qd by 10.

-The Demand for Pizzas in a Large Town Is Written