In a simple graphical model of the supply and demand for pizza with the price of pizza measured vertically and the quantity of pizza measured horizontally:
A) the supply curve slopes upward and to the right.
B) the demand curve slopes upward and to the right.
C) the supply curve slopes downward and to the right.
D) at the equilibrium price, the supply of pizza exceeds the demand for pizza.

Question

Quizplus · Accepted Answer

The supply curve slopes upward and to the right, as the quantity of pizza supplied increases at higher prices. The demand curve slopes downward and to the right, as the quantity of pizza demanded decreases at higher prices. At the equilibrium price, quantity supplied equals quantity demanded, meaning that there is neither excess supply nor excess demand. Therefore, option D is incorrect.

In a Simple Graphical Model of the Supply and Demand