Author Question: The demand for pizzas in a large town is written as: Qd = 120 - 10P + 5Pb - 0.5Ps - 10Y, where Qd ... (Read 74 times)

debasdf · **on:** Jul 1, 2018

The demand for pizzas in a large town is written as:

Qd = 120 - 10P + 5Pb - 0.5Ps - 10Y, where Qd is the quantity demanded, P is the price, Pb is the price of burritos, Ps 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 Qd change?
A) increase by 10
B) decrease by 10
C) unchanged
D) not enough information provided

Question 2

Indifference curves that are thick violate

A) the assumption of transitivity.
B) the assumption that more is better.
C) the assumption of completeness.
D) none of the assumptions.