Suppose that the current price in a market for pizza is $9.At that price,the quantity demanded is 519 and the quantity supplied is 400.At the current price,the market is experiencing

Question

Quizplus · Accepted Answer

At the current price of $9, the quantity demanded is 519 which exceeds the quantity supplied of 400. This means that there is excess demand of 119 pizzas, indicating that the market is not in equilibrium. In order to reach equilibrium, either the price needs to increase to reduce quantity demanded or the quantity supplied needs to increase to meet demand.

Suppose That the Current Price in a Market for Pizza