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const2013 [10]
3 years ago
11

John is selling his pizza for $6 per slice in an area of high demand. however, customers are not buying his pizza. using what yo

u learned about the principles of equilibrium, write three to four sentences about how john could solve his problem.
Social Studies
2 answers:
kodGreya [7K]3 years ago
6 0

John could solve this problem by decreasing the price of his pizza. At this time, John has what is known as a surplus of pizza. This means he is making more pizza than people are buying. Even though there is high demand for this good, the price is at a point where many individuals will not buy it or will buy it from someone else.

In order to attain equilibrium, John must reduce the price. By reducing the price, more individuals will be buying pizza. In order to reach equilibrium, John will have to decrease prices so that the demand for pizza and the supply of pizza are the same.

RoseWind [281]3 years ago
6 0

John's prices are too high. This is causing excess supply: John's workers can make many pizzas, but at these high prices, consumers are only demanding a small amount. If the price per slice decreased, consumers would demand more of John's pizza. This means that business would move toward a point of equilibrium, where supply matches demand at the appropriate price.

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