The following data represents the weekly supply and demand schedules for same quality one-topping large pizzas for
Question:
The following data represents the weekly supply and demand schedules for “same quality” one-topping large pizzas for delivery in Madison during the summer months.
Price Qsup Qdem
14 10,000 30,000
16 15,000 25,000
18 20,000 20,000
20 25,000 16,000
22 35,000 13,000
1. In the space above draw the supply and demand curves. Label the axes.
2. What is the equilibrium price __________ in a competitive market?
3. What is the equilibrium quantity ____________ in a competitive market?
4. Calculate the amount of revenue from sales in this market?
5. The government places a price ceiling of $20.
a) There will be a shortage in this market
b) There will be a surplus in this market
c) 20,000 pizzas will be sold
d) 25,000 pizzas will be sold
6. The government places a price floor of $20.
a) There will be a shortage in this market
b) There will be a surplus in this market
c) 20,000 pizzas will be sold
d) 25,000 pizzas will be sold
Expert Answer:
The equilibrium price in a competitive market is 18 The equilibrium quantity in ... View the full answer
