If the equilibrium point of 5-for-1 Pizza is 2000 pizzas per week and $10.00 per pizza, and the owner decides to make 1900 pizzas and sell them at the same price, what is the likely outcome?
A) The business will have less expenses and also have greater profit.
B) The business will have a shortage.
C) The business will make more profit.
D) The business will have a surplus.
E) The business will have less expenses but no more profit.

Question

Quizplus · Accepted Answer

By producing 1900 pizzas instead of the equilibrium quantity of 2000, the business is not meeting the demand at the equilibrium price of $10.00 per pizza. This will likely result in a shortage, as the quantity supplied (1900 pizzas) is less than the quantity demanded at the equilibrium price.

If the Equilibrium Point of 5-For-1 Pizza Is 2000 Pizzas