Question

Total Sheet 1-1.The market fer pizza has the demand and supply schedules as the table 1.1 Graph plot) the demand and supply curve by using the informaticn of the demand and supply schedule in the table Demand and Supply Schedale $7 68 53 98 110 121 For ploting What is the eqalhium price and quintity in this marke Equilbroum Price quilhbrium Ouantity 3 If the actual price in this market were above the equilibriure price, say $8, whatl is the amount of the gap betwcen the quantity soppled nd the quaneity demanded And what is the gap cled demabdeda The amount of the is bdween 5 and The pip is called 4 1f the heal price in this market were below the eqailiteio pre ay S5,what in the ampunt of the gop etwoe the quaetity spplie The amount of the pap nits The gip is call

Answer 1

Equilibrium price is the price at which quantity supplied is equal to quantity demanded.

Equilibrium quantity is the quantity at which quantity supplied and quantity demanded is equal

If actual price is above equilibrium price, quantity supplied is greater than quantity demanded which creates surplus,which is excess supply. It is excess supply/ surplus.

If actual price is below equilibrium price, quantity supplied is less than quantity demanded which creates shortage. It is called excess demand/ shortage.