-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 burittos,Ps is the price of soft drinks sold in the pizza restaurants,and Y is personal income per month (in thousand dollars).What is ∆Q/∆Ps?
A) 5
B) -5
C) 0.5
D) -0.5

Question

-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 burittos,Ps is the price of soft drinks sold in the pizza restaurants,and Y is personal income per month (in thousand dollars).What is ∆Q/∆Ps?
A) 5 
B) -5 
C) 0.5 
D) -0.5

Quizplus · Accepted Answer

The coefficient of Ps in the demand equation is -0.5, indicating that for every unit increase in the price of soft drinks, the quantity demanded for pizzas decreases by 0.5 units.

-The Demand for Pizzas in a Large Town Is Written