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The market for pizza has the following demand and supply schedules:Price Quantity Demanded Quantity Supplied$ 4 135 pizzas 26 pizzas5 104 536 81 817 68 988 53 1109 39 121a. Graph the demand and supply curves. What is the equilibrium price and quantity in this market?b. If the actual price in the market were above the equilibrium price, What would drive the market toward the equilibrium?c. If the actual price in the market were below the equilibrium price what would drive the market towards the equilibrium? Read more:
How can you find equilibrium GDP using a graph? (not necessarily this one) and how can you find the multiplier of this graph? In the given graph, the equilibrium is at the point where the two lines intersect. The flatter curve, C+I+G+X is the AD curve (aggregate demand curve) while the 45 degree line represents income, Y. At equilibrium we require AD=Y. This occurs at the intersection. In this case the…

ersection is at Y = 6000. As for the multiplier, it will be the slope of the AD line in this case slope can be computed using any two points on the AD line. Take (6000,6000) and (2000,5000) Slope is computed as, m = (6000-5000)/(6000-2000) = 1000/4000 =0.25



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