The Amount of Pizzas That Consumers Want to Buy Per

question 71

Multiple Choice

The amount of pizzas that consumers want to buy per week is reflected in the equation P = 15 - .02Q_d,where Q_d is 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.

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand, thus the market is in balance.

Compact Discs

Optical storage media used to store data, including music and software, readable by laser-based players and computers.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied, leading to market stability.