Calculate elasticity of demand and supply at equilibrium

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Reference no: EM131238704

Suppose the market demand for pizza is Qd = 300-20P and the market supply of pizza is Qs= -100 + 20 P where P= price (per pizza)

a. At equilibrium how many pizzas will be bought and sold? What is the equilibrium price? Calculate elasticity of demand and supply at equilibrium.

b. What would happen if the sellers set the price at $15 per pizza? Calculate price elasticity of demand and supply at this point.

Reference no: EM131238704

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