Given the following demand and supply schedules for the market for pizza, at what price will the market reach equilibrium?Demand Schedule:Price: 10, Quantity Demanded: 100Price: 8, Quantity Demanded: 200Price: 6, Quantity Demanded: 300Price: 4, Quantity Demanded: 400Supply Schedule:Price: 10, Quantity Supplied: 400Price: 8, Quantity Supplied: 300Price: 6, Quantity Supplied: 200Price: 4, Quantity Supplied: 100

• A. Price = 8
• B. Price = 10
• C. Price = 4
• D. Price = 6

Answer: (D)

Verified step by step guidance

1. Identify the equilibrium price as the price at which the quantity demanded equals the quantity supplied in the market.
2. Examine the demand schedule and note the quantities demanded at each price: for example, at price 10, quantity demanded is 100; at price 8, it is 200; at price 6, it is 300; and at price 4, it is 400.
3. Examine the supply schedule and note the quantities supplied at each price: for example, at price 10, quantity supplied is 400; at price 8, it is 300; at price 6, it is 200; and at price 4, it is 100.
4. Compare the quantities demanded and supplied at each price to find where they are equal or closest: set up the condition \(\text{Quantity Demanded} = \text{Quantity Supplied}\) and check which price satisfies this condition.
5. Conclude that the equilibrium price is the one where the market clears, meaning the quantity demanded equals the quantity supplied, ensuring no excess demand or supply.