Question
20 }(c) PRICE OF A SLICE OF PIZZA & QUANTITY DEMANDED & OUANTITY SUPPLIED 4.00 & 170 & 225 Look at the above information from a supply and demand schedule. At the price of 4 , the market currently A has a surplus of pizza B has a shortage of pizza C is in a state of equilibrium
Answer
4.2
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Uwenna
Master · Tutor for 5 years
Answer
#ExplanationThe supply and demand schedule shows the quantity demanded and quantity supplied at a particular price. In this case, the price of a slice of pizza is $4.00. At this price, the quantity demanded is 170 slices and the quantity supplied is 225 slices. A surplus occurs when the quantity supplied is greater than the quantity demanded. In contrast, a shortage occurs when the quantity demanded is greater than the quantity supplied. If the quantity demanded and the quantity supplied are equal, the market is in a state of equilibrium. In this case, the quantity supplied (225 slices) is greater than the quantity demanded (170 slices). This means that there is a surplus of pizza in the market.#AnswerA has a surplus of pizza