a. Graph the supply and demand schedules for pizza using $5 through $15 as the value of P. b. In equilibrium, how many pizzas would be sold and at what price? c. What would happen if suppliers set the price of pizza at $15?

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter5: Markets In Motion And Price Controls
Section: Chapter Questions
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2. Suppose the market demand and supply for pizza is given by the following:
Qa = 300 – 20P
Qs = 20P – 100
a. Graph the supply and demand schedules for pizza using $5 through $15 as the value of P.
b. In equilibrium, how many pizzas would be sold and at what price?
C.
What would happen if suppliers set the price of pizza at $15?
d. Suppose the price of hamburgers, a substitute for pizza, doubles. This leads to a double of the
demand for pizza. Write the equation for the new market demand for pizza.
e. Find the new equilibrium price and quantity of pizza.
2) If a firm is producing where MR > MC
NOV
2
MacBook Pro
Transcribed Image Text:2. Suppose the market demand and supply for pizza is given by the following: Qa = 300 – 20P Qs = 20P – 100 a. Graph the supply and demand schedules for pizza using $5 through $15 as the value of P. b. In equilibrium, how many pizzas would be sold and at what price? C. What would happen if suppliers set the price of pizza at $15? d. Suppose the price of hamburgers, a substitute for pizza, doubles. This leads to a double of the demand for pizza. Write the equation for the new market demand for pizza. e. Find the new equilibrium price and quantity of pizza. 2) If a firm is producing where MR > MC NOV 2 MacBook Pro
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