Question

Suppose that the demand and supply for pizza are given by the following equations: QD - 800 - 20P Qs - 200 + 10P Give all your answers to the nearest whole number. a. The equilibrium price is $ and the equilibrium quantity is b. If the price is $30, there is a pizzas. c. If the price is $10, there is a of pizzas.

Answer 1

The equilibrium price is $33 and the equilibrium quantity is 12. If the price is $30, there is a demand for 200 pizzas. If the price is $10, there is a supply of 0 pizzas.

Step-by-step explanation:

To find the equilibrium price and quantity, we need to set the demand and supply equations equal to each other:

QD - 800 - 20P = QS - 200 + 10P

Then, we can solve for the equilibrium price by isolating P:

30P = 1000

P = 33.33

Rounding to the nearest whole number, the equilibrium price is $33 and the equilibrium quantity is 12.

If the price is $30, we can substitute it into the demand equation to find the quantity demanded:

QD = 800 - 20(30)

QD = 800 - 600

QD = 200

So, if the price is $30, there is a demand for 200 pizzas.

If the price is $10, we can substitute it into the supply equation to find the quantity supplied:

QS = -200 + 10(10)

QS = -200 + 100

QS = -100

So, if the price is $10, there is a supply of -100 pizzas. However, since quantity cannot be negative, we can round it to 0.