Suppose the Market Demand Curve for Pizza Can Be Expressed

question 22

Multiple Choice

Suppose the market demand curve for pizza can be expressed as Q^D = 100 - 2P + 3Pb,where Q^D is the quantity of pizza demanded,P is the price of pizza,and Pb is the price of a burrito.What is the relationship between burritos and pizza,from the point of view of consumers?

• A) They are independent.
• B) They are complements.
• C) They are substitutes.
• D) Not enough information to answer the question.

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Definitions:

Imperfectly Competitive

A market situation where individual producers or consumers have some control over the price of goods and services, contrary to perfect competition.

Locally Owned

Businesses that are owned, operated, and controlled within a local area or community.

Burger King

A global chain of fast food restaurants specializing in hamburgers, known for its signature Whopper burger.

Imperfect Competition

Imperfect competition is a market structure where the conditions necessary for perfect competition are not met, leading to price and output decisions that are influenced by individual firms.