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22 Oct 2018

Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb, where QD 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 substitutes.

c. Not enough information to answer the question.

d. They are complements.

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Trinidad Tremblay
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23 Oct 2018
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Related questions

Suppose the market demand for pizza is given by Qd = 300 — 20P and the market supply for pizza is given by Qs = 20P — 100, where P = price (per pizza).

a. Graph the supply and demand schedules for pizza using $5 through $15 as the value of P.

b. In equilibrium, how many pizzas would be sold and at what price?

c. What would happen if suppliers set the price of pizza at $15? Explain the market adjustment process.

d. Suppose the price of hamburgers, a substitute for pizza, doubles. This leads to a doubling of the demand for pizza. (At each price, consumers demand twice as much pizza as before.) Write the equation for the new market demand for pizza.

e. Find the new equilibrium price and quantity of pizza.

A. consider a demand curve of the form
Qd=-2p+20

where Qd is the quantity demanded of a good and P is the price ofthe good. 
Qs=2p-4

where Qs is the quantity supplied. Be sure to put P on the verticalaxsis. Assume that all the Qs and Ps are nonnegative for parts a,b, and c. At what vaules of P and Q do these curve intersect thatis, where does Qd=As

B. Now suppose at each price that individuals demand four moreunits of output--that the demand curve shift to Qd=-2p+24
Graph this new demand curve. At what values of P and Q does the newdemand curve intersect the old supply curve--that is, where does Qd=Qs

29. Given the following demand and cost functions, determine the output and sales level that maximize profit.
Demand Function: Q = 25- P; Cost Function: TC = 20+5Q +Q2 (Points : 1) 20 Units
200 Units
5 Units
None of the Above

30. Assume the price of product B, increases from $1 to $1.50. As a result, the quantity demanded of product "A increases from 500 to 600 a month. This indicates that the cross-price elasticity and relationship between the two products. (Points : 1)
.50, Substitutes
.45, Substitutes
.45, Complements
.50, Complements
Products are not related

31. Given the marginal revenue from a product is $15 and the price elasticity of demand is -1.2, what is the price of the product? (Points : 1)
Not enough Information
$8
$88
$42
$68

32. Given the demand function: QD = -10-2.1 P +.62 Y. Where P is price and Y is Income (Points : 1)
For a 1% increase in price, quantity demanded falls by 2.1%
For a 1% increase in price, quantity demanded increases by .62%.
For a 1% decrease in price, quantity demanded increases by 2.72%
None of the above

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