Suppose that the demand of pizzas is given by Qp = 250 – 2P and the supply by Qs = 50 + 3P. %3D %3D a) On the same graph, draw the supply and the demand, and identify the market equilibrium. b) Find the market equilibrium. c) Now: that the demand of pizzas becomes Qp = 200 – 4P after suppose consumers' income increases. Define what a normal good is and determine if pizza is a normal good.
Suppose that the demand of pizzas is given by Qp = 250 – 2P and the supply by Qs = 50 + 3P. %3D %3D a) On the same graph, draw the supply and the demand, and identify the market equilibrium. b) Find the market equilibrium. c) Now: that the demand of pizzas becomes Qp = 200 – 4P after suppose consumers' income increases. Define what a normal good is and determine if pizza is a normal good.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that the demand of pizzas is given by Qp = 250 – 2P and the supply by Qs =
50 + 3P.
a) On the same graph, draw the supply and the demand, and identify the market
equilibrium.
b) Find the market equilibrium.
c) Now suppose that the demand of pizzas becomes Qp = 200 – 4P after
consumers' income increases. Define what a normal good is and determine if
pizza is a normal good.
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