Author Question: Suppose the market for pizza slices is in equilibrium at a price of 1 per slice. What conditions are ... (Read 85 times)

sc00by25 · **on:** Jun 30, 2018

Suppose the market for pizza slices is in equilibrium at a price of 1 per slice. What conditions are likely to be satisfied in the pizza slice market?

What will be an ideal response?

Question 2

The ratio of the change in consumption to the change in disposable income is the

A) average propensity to save. B) marginal propensity to consume.
C) average propensity to consume. D) marginal propensity to save.

peilian · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

The conditions that are satisfied when the market for pizza slices is in equilibrium are:
a) The number of pizza slices manufactured by sellers will equal the number of pizza slices purchased by buyers.
b) Pizza sellers will produce pizzas at the point where the cost of production is less than or equal to the market price of 1.
c) Buyers will consume pizza as long as the benefit that they derive from consumption is at least equal to the market price of 1.

Answer to Question 2

B