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The Market for Pizza has the following demand and supply schedules:
Price Quantity Demanded Quantity Supplied$4 135 pizzas 26 pizzas$5 104 pizzas 53 pizzas$6 81 pizzas 81 pizzas$7 68 pizzas 98 pizzas$8 53 pizzas 110 pizzas$9 39 pizzas 121 pizzas
Questions
A. Graph the demand and supply curves. What is the equilibrium price and quantity in this market?
B. If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium?
C. If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?
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