The market for pizza has the following demand and supply schedules: Price Quantity Demanded Quantity Supplied $4 135 pizzas 26 pizzas 5 104 53 6 81 81 7 68 98 8 53 110 9 39 121 a. Graph the demand and supply curves. What is the equilibrium price and quantity in this market? b. If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? c. If the actual price in this market were below the equilibrium price, what would drive the market toward the equilibrium?
Step 1 of 4
The demand and supply schedule represent the tabular representation of the demand and supply for the corresponding price. Here, the law of demand and supply works; thus, a positive relation for supply and negative relation for demand is experienced.