A market research team has come up with the demand and supply schedules for pizza. These schedules are given in the table below, use this data to analyze the situation for the market for pizza. A) Dra

A) The demand curve for pizza will slope downwards from left to right since as the price of pizza decreases, the quantity demanded increases. The slope of the demand curve is steep indicating that the quantity demanded is highly responsive to price changes. The supply curve for pizza will slope upwards from left to right since as the price of pizza increases, the quantity supplied also increases. The equilibrium price is where the demand and supply curves intersect, which is at a price of {eq}$8 {/eq} and an equilibrium quantity of 200 pizzas. B) If the price of pizza is {eq}$10 {/eq}, it is above the equilibrium price, resulting in a surplus of pizzas as the quantity supplied is greater than the quantity demanded. The surplus will put downward pressure on the price of pizza, which will decrease until it reaches the equilibrium price. If the price of pizza is {eq}$6 {/eq}, it is below the equilibrium price, leading to a shortage of pizzas as the quantity demanded is greater than the quantity supplied. This shortage will put upward pressure on the price of pizza, which will increase until it reaches the equilibrium price. C) The prediction states that the quantity demanded for pizza will increase by 150 pizzas at each price. This means that the demand curve will shift to the right, indicating an increase in demand. The new equilibrium price will be higher than the previous equilibrium price since there is an increase in demand, leading to a price of {eq}$10 {/eq}. The new equilibrium quantity will be higher as well, reaching 350 pizzas. The market will adjust by increasing the price of pizza and increasing the quantity supplied until a new equilibrium is reached.