Question

A) Suppose that the demand for pizzas were to increase by 60 pizzas per day. Show the new demand, labeled D2 in

Fig 2.21
b) If the price stays at the old equilibrium, there would be a _____ (surplus/shortage) of _____ pizzas.
c) What would be the new equilibrium price and quantity? Equilibrium price: $______ Equilibrium quantity: _______

Answer 1

B: if the price stays at the old equilibrium, there would be a shortage of 15 pizzas.

C: what would be the new equilibrium price and quantity? Equilibrium price:

$24 equilibrium quantity: 240