Question #1Suppose the market demand for pizza is given by_Qd= 300 – 20p and the market supply is given byQs= 20p – 100, where P = Price (per pizza).a. Graph the supply and demand schedules for pizza using$5 through $15 as the value of P.b. In equilibrium, how many pizzas would be sold and atwhat price?c. What would happen if suppliers set the price of pizza at $15?Explain the market adjustment process.d. Suppose the price of hamburgers, a substitute for pizza,doubles. This leads to a doubling of the demand for pizza.(At each price, consumers demand twice as much pizza asbefore.) Write the equation for the new market demandfor pizza.e. Find the new equilibrium price and quantity of pizza.Question #22 Use the following diagram to calculate total consumer surplusat a price of $8 and production of 6 million meals perday. For the same equilibrium, calculate total producersurplus. Assuming price remained at $8 but production wascut to 3 million meals per day, calculate producer surplusand consumer surplus. Calculate the deadweight lossfrom underproduction.
