a. The demand for pizza is given by ?" = 85 − 0.4? where ?" is the quantity demanded in slices and P is the price per slice. The supply of pizza is given by ?+ =55+0.6?. i. Calculate the equilibrium price and equilibrium quantity of pizza . ii. Calculate the demand and supply for pizzas if the market price is $15 per slice. What problem exists in the economy? What would you expect to happen to price? b. As more people buy televisions, the demand for Netflix increases and the price Price of Sandals Price of Skirts Quantity Demanded of sandals Quantity Demanded of Skirts of Netflix decreases. The fall in the price of Netflix decreases the supply of Netflix.” Explain what is wrong with this statement.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 24P
icon
Related questions
Question
a. The demand for pizza is given by ?" = 85 − 0.4? where ?" is the quantity demanded in slices and P is the price per slice. The supply of pizza is given by ?+ =55+0.6?. i. Calculate the equilibrium price and equilibrium quantity of pizza . ii. Calculate the demand and supply for pizzas if the market price is $15 per slice. What problem exists in the economy? What would you expect to happen to price? b. As more people buy televisions, the demand for Netflix increases and the price Price of Sandals Price of Skirts Quantity Demanded of sandals Quantity Demanded of Skirts of Netflix decreases. The fall in the price of Netflix decreases the supply of Netflix.” Explain what is wrong with this statement.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Security Market Line
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax