Question

Price (dollars per pia) 15 14 13 12 00 150 200 250 00350 Quanty thouands of pirs per day s0 12. The above figure shows the market for pizza. The market is in equilibrium when the wages paid pizza workers increases. What point represents the most likely new price and quantity? A) A B) B C) C D) D E) E 13. If both the supply and demand curves shift simultaneously, we can ahways predict what will happen to A) both the price and the quantity. B) either the price or the quantity, but not both. C) only the price. D) only the quantity. E) neither the price nor the quantity. O Focus MacBook Pro X

Answer 1

1) When the wage paid to workers the demand for workers increases which will reduce the equilibrium quantity

so, the equilibrium point is B

option(B)

2) When both shifts, we can predict what will happen to either price or quantity but not both

option(B)