The demand for pizza is represented by PD = 79 - 3Q and the supply for pizza is represented by
PS = 2Q + 4. Determine for each of the following prices if it is a price floor, price ceiling, or neither. For each price determine the quantity shortage or surplus.
a) P = $40.
b) P = $46.
Ans for equilibrium supply=Demand (2Q+4)=(79-3Q) 5Q=75 Q=15 and price=(2Q+4)=(2)(1)(5)+4=34 1 since p of 40 is above... View the full answer