Problem 1: Assume the demand for pizza (denoted Z) in Sacramento, CA is: Q2 = 80 - 2pz + =PB + -Y Where Qy is quantity demanded of pizzas (Z) in thousands of pizzas per month, Pz is the price of pizza, Pp is the price of burgers, and Y is median household income in thousands of dollars per month. A. If the price of burgers increases by $1, does demand for pizzas increase or decrease? Does this shift the demand curve or cause a movement along the demand curve? (2 pts) B. What is the demand function if pp = $8 and Y = $60? (2 pts) Assume the supply (from area restaurants) for pizza in Sacramento, CA is: Of = 10 + 3pz Where Q2 is quantity supplied of pizzas (Z) in thousands of pizzas per month and pz is the price of pizza. C. Graph the demand function from Part (B) and the supply function above. Label everything. (2 pts) D. What is the equilibrium quantity and price of pizza in Sacramento? (2 pts)A new restaurant (denoted N) that serves pizza recently opened in Sacramento. The supply function for this new restaurant is: Q5 = 2+ Pz E. What is the aggregate supply function, Q,", for pizza in Sacramento? (3 pts) F. Add the aggregate supply function to the graph in part (C). Be sure to label everything on the graph. (2 pts) G. What is the new equilibrium quantity and price of pizza in Sacramento? (3 pts) H. Using the demand function from part (B) and the aggregate supply function you found in part (E), if the price of burgers increases by $2, what happens to the equilibrium price of pizza? (3 pts)