Torres Torres, Sergi & Rivas Eguizabal, Brad 11.01.

2024
1 BATX

ACTIVITY «El Molino».

PRICE Q. DEMANDED (PIZZA)

4 100

3 150

2 225

1 300

PRICE Q. DEMANDED (PIZZA)

4 400

3 320

2 225

1 80

A) Draw the supply and demand curve on a graph. What is the balance point? What
does this market equilibrium indicate?

The balance point is 225 pizzas.

The market equilibrium indicates that at this

quantity, the amount of pizza consumers
want to buy equals the amount that
suppliers want to sell, so there's no
shortage or surplus.

B) In what situation we are if the price is 3 euros? What must happen to achieve
equilibrium.

- If the price is 3 euros, the quantity demanded is 150 pizzas and the quantity
supplied is 320 pizzas. This creates a surplus because the quantity supplied is
Torres Torres, Sergi & Rivas Eguizabal, Brad 11.01.2024
1 BATX

greater than the quantity demanded. To achieve equilibrium, either the demand
must increase (more people want to buy pizza at this price), or the supply must
decrease (fewer suppliers want to sell pizza at this price).

C) What situation we find at the price of 1 euro? What should happen to reach
equilibrium?

- At the price of 1 euro, the quantity demanded is 300 pizzas and the quantity
supplied is 80 pizzas. This creates a shortage because the quantity demanded
is greater than the quantity supplied. To reach equilibrium, either the demand
must decrease (fewer people want to buy pizza at this price), or the supply must
increase (more suppliers want to sell pizza at this price).