The market for pizza has the following demand and supply schedules: Price Quantity Demand Quantity Supplied $4 135 26 $5 104 53 $6 80 80 $7 68 98 $8 53 110 $9 39 121(a)

The market for pizza has the following demand and supply schedules: Price Quantity Demand Quantity Supplied supply of pizzas increased by 51 at each price $4 135 26 77 5 104 53 104 6 80 80 131 7 68 98 149 8 53 110 162 9 39 121 172 a) In a competitive market, price and output are determined at the equilibrium, which is the point where supply equals demand. At this point, there is a price such that the quantity supplied equals the quantity demanded. From the above table, we observe that the equilibrium price is $6 and equilibrium quantity is 80 pizzas. b) At a price of $5, there will be a shortage as the quantity demand exceeds the quantity supplied