Market Equilibrium

16 14 12 10 O 100 200 300 400 Quantity (pizzas per day) 3 of 4 AMDG a. Based on the graph above, identify the equilibrium price and the equilibrium quantity. What does the equilibrium point prove? (3 points if fully explained, 2 points if explained partially, 1 point if missed the main points, 0 point if the answer is off tangent, 1 point for each correct equilibrium price and equilibrium quantity) b. If the price of a pizza is P16, is there a shortage or a surplus? Explain why such surplus/shortage happened? (3 points if fully explained, 2 points if explained partially, 1 point if missed the main points, 0 point if the answer is off tangent) c. If the price of a pizza is P12, is there a shortage or a surplus? Explain why such surplus/shortage happened? (3 points if fully explained, 2 points if explained partially, 1 point if missed the main points, 0 point if the answer is off tangent)