Final answer:
The demand for pizza is impacted by its own price, the price of related goods (hot dogs and soft drinks), advertising, and population. Increases in the price of pizza decrease demand, whereas increases in the price of hot dogs, advertising, and population increase demand. The price of soft drinks has an inverse relationship with pizza demand.
Step-by-step explanation:
The student's question pertains to analyzing the factors affecting the demand for pizza. The demand equation provided is Qd = -100P + 1.5Phd - 5Psd + 20A + 15Pop, where Qd is the quantity demanded for pizza, and P is the price of pizza. Other variables include Phd (the price of hot dogs, a substitute good), Psd (the price of soft drinks, a complement good), A (advertising), and Pop (population).
According to the equation, if the price of pizza (P) increases, the quantity demanded for pizza will decrease, as indicated by the negative coefficient (-100). Conversely, an increase in the price of hot dogs (Phd) or an increase in advertising (A) or population (Pop) will lead to an increase in the quantity demanded for pizza. The negative coefficient for the price of soft drinks (Psd) suggests that soft drinks are complementary goods, meaning that if the price of soft drinks increases, the demand for pizza decreases.
Assuming that the supply of personal pizzas is given by the equation Qs = 2 + 5P and the market operates where supply equals demand (Qd = Qs), we can calculate how much consumers will buy at a given price using algebra.