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The home screen erotharging spree TAAL OD berdinate
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Answer #1

At the equilibrium point, market demand and market supply curves intersect each other.

Therefore, the equilibrium price and equilibrium quantities are 8 and 60 respectively.

If the government restricts the seller from charging price over $7, then the quantity supplied would be 40 pizzas and quantity demand would be 70 pizzas.

Since the quantity supplied is lower than the quantity demand. The number of pizzas consumed will be 40.

At equilibrium number of pizzas consumed are 60.

After restrictions by the government, the number of pizzas consumed will be 40.

Therefore, as a result of government restrictions the number of pizzas consumed will decrease.

Answer: Option (B) i.e., decrease.

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