Final answer:
When the price of a personal pizza is $2, according to the demand equation Qd = 16 - 2P, consumers will buy 12 personal pizzas.
Step-by-step explanation:
When the price of each personal pizza is set at $2, it can be plugged into the demand equation, Qd = 16 - 2P, where Qd is the quantity demanded and P is the price. To find out how much consumers will buy at this price, simply substitute the price into the equation:
Qd = 16 - 2(2)
Qd = 16 - 4
Qd = 12
Therefore, consumers will buy 12 personal pizzas when the price is $2 each. This equation assumes that the relationship between price and quantity is linear and represents basic principles of supply and demand.