Answer to Question #170614 in Microeconomics for Tayyaba

Question

The market for pizza has the following demand and supply schedules: 

Price

Quantity Demanded

Quantity Supplied

4

135

26

5

104

53

6

81

81

7

68

98

8

53

110

9

39

121

 Graph the demand and supply curves. What is the equilibrium price and quantity in this market?

Answer 1

Let' s plot the demand and supply curves:

As we can see from the graph, the equilibrium price is $6 and the equilibrium quantity is 81 pizzas.