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Pizza Northside Pizza and Southside Pizza compete in the pizza market. The demand equations for the two firms are Qn = 5000 1000Pn 200Ps Qs
Pizza Northside Pizza and Southside Pizza compete in the pizza market. The demand equations for the two firms are Qn = 5000 1000Pn 200Ps Qs = 4000 1200Ps 210Pn. A large apartment complex is built right next to Northside's prime location. This causes Northside's demand curve to shift to the right; Southside's demand equation doesn't change. The new demand equations are Qn = 6000 1000Pn 200Ps Qs = 4000 1200Ps 210Pn. Explain how and why you expect Southside's equilibrium price to change as a result
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