Question

Price	Quantity demanded	Quantity supplied
3	1200	600
6	1000	700
9	800	800
12	600	900
15	400	1000

1. Refer to Table This market will be in equilibrium if the quantity of pizzas supplied per month is
2. Refer to Table If the price per pizza is $6, there is a(n)

3. Refer to Table If the price per pizza is $12, there is an

4. Refer to Table In this market there will be an excess supply of 600 pizzas at a price of

5. Refer to Table If the price per pizza is $3, there is an

6. When there is an excess demand of a product in a market, there is a tendency for price to

Answer 1

1. This market will be in equilibrium if the quantity of pizzas supplied per month is 800 units. Equilibrium condition is:

Quantity demanded = Quantity Supplied

2. At price equals $ 6 quantity demanded equals quantity supplied which is 800 units. Market will be in equilibrium. There will be no excess supply or demand.

3. If the price per pizza is $12, there is an excess Supply of 300 units ( 900 - 600). It will lead to fall in price.

4.In this market there will be an excess supply of 600 pizzas at a price of $ 15. At price equals $15 quantity supplied is 1000 units and quantity demanded is 400 units. Therefore excess supply is of 600 units. (1000- 400)

5.If the price per pizza is $3, there is an excess demand of 600 units. At price equals to $3 quantity demanded equals 1200 units while quantity supplied equals to 600 units. ( 1200 - 600 = 600)

6.When there is an excess demand of a product in a market, there is a tendency for price to rise. Due to excess demand customers will be willing to buy products on higher prices.