The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Q_d, where Q_dis the amount of pizzas purchased per week and P is the price of pizzas. On the basis of this information, we can say that A) if pizzas were free, people would consume 800 per week. B) more pizzas will be purchased at a high price than at a low price. C) if the price of pizzas is $6, then 150 will be purchased. D) 50 fewer pizzas will be purchased per week for every $1 increase in price.

Question

Quizplus · Accepted Answer

The coefficient of price (in this case, -.02) can be used to determine the change in quantity demanded in response to a change in price. In this case, for every $1 increase in price, the quantity demanded (Q_d) will decrease by 50 pizzas per week. Option A is not true as it assumes that price has no effect on demand. Option B may or may not be true, as it depends on the specific demand curve shape. Option C cannot be determined from the given equation, as it only shows the relationship between price and quantity demanded.

The Amount of Pizzas That Consumers Want to Buy Per