Question

on 10 of 10 > Consider the supply and demand schedules for calzones at a local pizzeria. Use the information in the schedules to answer the five questions. Demand Price (P) Quantity (Q) $13 S12 S11 SIO 59 $8 $7 56 55 54 20 40 60 80 100 120 140 160 180 20 Supply Price (P) Quantity (0 $4 55 56 57 $8 89 $10 SL $12 $13 20 30 40 50 60 70 80 90 100 110 What is the equilibrium price? equilibrium price: $ At what price is there a shortage of 60 calzones? price for shortage of 60 calzones: $ At what price is there a surplus of 60 calzones? price for surplus of 60 calzones: $ At a price of $13, there is a surplus of how many calzones? surplus: calzones At a price of $10, there is a shortage of how many calzones? shortage shortage: calzones

Answer 1

a) The equilibrium price in the market is $10 and the quantity at that price is 80.

b) At the price of $8 there is a shortage of 60 pizza.

c) At the price of $12 there is a surplus of 60 units.

d) At the price of $13 the demand is 20 and the supply is 110 then the surplus is 90.

e) At the price of $10 there is no shortage and no surplus.