The following graph will represent slices of pizza on the x-axis and

U.S. dollars on the y-axis. Please start at 5 slices of pizza and $5.00 as

point A (equilibrium). Remember that the coordinates are (x, y). Use a

1 to 1 ratio for all the questions.

1) Using the graph above at 5 slices of pizza and $5.00 (point A), how

will the market for pizza look like when there is a new technological

machine to make pizzas at a faster rate?

a. Explain the law of supply using quantity and price

b. Will the pizza market be in equilibrium or will it experience a

market failure? Why or why not?

2) Using the graph above at 5 slices of pizza and $5.00 (point A), how

will the market for pizza look like when there is a $2.00 price increase

affecting consumers?

a. Explain the law of demand using quantity and price

b. Explain the concept of quantity demanded?

c. Why will the pizza market experience a market failure? What

kind of market failure?

c. How can this market be corrected?

I am sorry I can;t send the picture of this questions. But you will get it when you search on the course hero