The demand for pizzas in a large town is written as: Q_d = 120 - 10P + 5P_b - 0.5P_s - 10Y,where Q_d is the quantity demanded,P is the price,P_b is the price of burritos,P_s 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 Q_dchange? A)increase by 10 B)decrease by 10 C)unchanged D)not enough information provided

Question

Quizplus · Accepted Answer

The demand equation shows that the quantity demanded of pizzas decreases by 10 units for every $1,000 increase in personal income (as indicated by the "- 10Y" term), hence a $1,000 increase in personal income would decrease the quantity demanded by 10.

The Demand for Pizzas in a Large Town Is Written