You are advising Roy on the opening of his Original-Original Famous Pizzeria. By plotting the points below on a coordinate plane, you can show Roy the price points that would lead to a shortage of slices, a surplus of slices, and the point of maximum efficiency per slice. On the graph paper below:label your vertical axis with prices and your horizontal axis with quantity,plot each point of the demand and draw the curve with one color.plot each point of supply and draw the curve with a different color, identify the equilibrium point on your graph PriceperSliceNumber of Roy's Famous slicespeople will to buy at this priceDEMAND AND SUPPLY FOR A SLICE OF ROY'S FAMOUS PIZZA(in thousands)Number of slices Roy cansupply at this price perslice (in thousands)Shortage (-)or Surplus (+)A$3.5080200B$3.25100180C$3.00120160D$2.75140140E$2.50160120F$2.25180100G$2.00200605. Explain what condition would exist in the market if the price of a pizza slice was above theequilibrium, and what condition would exist in the market if the price of pizza slice was below theequilibrium.

Demand in the market represents the consumers' willingness to pay for the goods and services in the…

Answered: Price per Slice DEMAND AND SUPPLY FOR A…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 8P

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You are advising Roy on the opening of his Original-Original Famous Pizzeria. By plotting the points below on a coordinate plane, you can show Roy the price points that would lead to a shortage of slices, a surplus of slices, and the point of maximum efficiency per slice. On the graph paper below:

label your vertical axis with prices and your horizontal axis with quantity,
plot each point of the demand and draw the curve with one color.
plot each point of supply and draw the curve with a different color,
identify the equilibrium point on your graph

Price
per
Slice
Number of Roy's Famous slices
people will to buy at this price
DEMAND AND SUPPLY FOR A SLICE OF ROY'S FAMOUS PIZZA
(in thousands)
Number of slices Roy can
supply at this price per
slice (in thousands)
Shortage (-)
or Surplus (+)
A
$3.50
80
200
B
$3.25
100
180
C
$3.00
120
160
D
$2.75
140
140
E
$2.50
160
120
F
$2.25
180
100
G
$2.00
200
60
5. Explain what condition would exist in the market if the price of a pizza slice was above the
equilibrium, and what condition would exist in the market if the price of pizza slice was below the
equilibrium.

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