1. Suppose the demand for frozen pizzas is given by the following equation: QD=100-50P+25P, -1.51 where QD denotes quantity demanded of frozen pizzas, P denotes the price of a frozen pizza, PP denotes the price of pizzeria pizza, and / denotes daily income. Answer the following questions assuming the price of a pizzeria pizza is $10 and income is $10, unless otherwise noted. a) On a graph, Label the axes for the market for frozen pizzas. b) Plot a point at the horizontal intercept of the demand curve, given the assumptions at the start of the problem. c) Plot a point at the vertical intercept of the demand curve, given the assumptions at the start of the problem. Connect your points and label your curve.

1. Suppose the demand for frozen pizzas is given by the following equation: QD=100-50P+25P, -1.51 where QD denotes quantity demanded of frozen pizzas, P denotes the price of a frozen pizza, PP denotes the price of pizzeria pizza, and / denotes daily income. Answer the following questions assuming the price of a pizzeria pizza is $10 and income is $10, unless otherwise noted. a) On a graph, Label the axes for the market for frozen pizzas. b) Plot a point at the horizontal intercept of the demand curve, given the assumptions at the start of the problem. c) Plot a point at the vertical intercept of the demand curve, given the assumptions at the start of the problem. Connect your points and label your curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. Suppose the demand for frozen pizzas is given by the following equation:
QD =100-50P+25Pp-1.51
where QD denotes quantity demanded of frozen pizzas, P denotes the price of a frozen pizza, Pp
denotes the price of pizzeria pizza, and / denotes daily income.
Answer the following questions assuming the price of a pizzeria pizza is $10 and income is $10,
unless otherwise noted.
a) On a graph, Label the axes for the market for frozen pizzas.
b)
Plot a point at the horizontal intercept of the demand curve, given the assumptions at the start
of the problem.
c) Plot a point at the vertical intercept of the demand curve, given the assumptions at the start of
the problem. Connect your points and label your curve.

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