Question

Consider the supply and demand schedules for calzones at a local pizzeria. Use the information in the schedules to answer the five questions.

Demand

Price (P)	$10	$9	$8	$7	$6	$5	$4	$3	$2	$1
Quantity (Q)	20	40	60	80	100	120	140	160	180	200

Supply

Price (P)	$1	$2	$3	$4	$5	$6	$7	$8	$9	$10
Quantity (Q)	20	30	40	50	60	70	80	90	100	110

Consider the supply and demand schedules for calzones at a local pizzeria. Use the information in the schedules to answer the five questions.

Demand

Price (P)	$10	$9	$8	$7	$6	$5	$4	$3	$2	$1
Quantity (Q)	20	40	60	80	100	120	140	160	180	200

Supply

Price (P)	$1	$2	$3	$4	$5	$6	$7	$8	$9	$10
Quantity (Q)	20	30	40	50	60	70	80	90	100	110

What is the equilibrium price?

equilibrium price: $

At what price is there a shortage of 60 calzones?

price for shortage of 60 calzones: $

At what price is there a surplus of 60 calzones?

price for surplus of 60 calzones: $

At a price of $1010, there is a surplus of how many calzones?

surplus:

calzones-At a price of $7,7, there is a shortage of how many calzones?

shortage:

calzones

Answer 1

P	QS	QD
1	20	200
2	30	180
3	40	160
4	50	140
5	60	120
6	70	100
7	80	80
8	90	60
9	100	40
10	110	20

-The equilibrium occurs where QD=QS

Equilibrium Price = $7

-A shortage occurs when QD>QS at a price below the equilibrium price

At P=$5, QS= 60 and QD=120 so there is a shortage of 120-60= 60 calzones

- A surplus occurs when QD<QS at a price above the equilibrium price

At P=$9, QS=100 and QD=40 so there is a surplus of 100-40=60 calzones

-At a price of $10, there is a surplus of how many calzones?

surplus:110-20 = 90 calzones

-At a price of $7 there is a shortage of how many calzones?

shortage:80-80=0 calzones