Final answer:
For $2 each, consumers will purchase 12 personal pizzas according to the demand equation Qd = 16 - 2P. The quantity demanded equals the quantity supplied, confirming the correctness of the result. The supply and demand curves also intersect at this price and quantity on a graph.
Step-by-step explanation:
When the price of each personal pizza is $2, we want to determine how much consumers will buy using the given demand equation: Qd = 16 - 2P. Plugging in $2 for P, we get:
Qd = 16 - 2(2)Qd = 16 - 4Qd = 12
Thus, for $2 each, consumers will buy 12 personal pizzas. This demand quantity is in balance with the supply (Qs), indicating that the calculations are correct since Qd = Qs. In case of preferring a visual representation, if one graphs the demand curve (P = 8 - 0.5Qd) and the supply curve (P = -0.4 + 0.2Qs), they will intersect at the price of $2 and the quantity of 12 personal pizzas, confirming that the same result can be achieved whether we use algebra or graphs.