Question

The table given below shows the demand and supply position of Pizza's at various prices.

Price	Daily demand	Daily supply
25	3000	2300
27	2950	2350
30	2750	2475
32	2650	2650
33	2600	2750

What is the equilibrium price?

• A. Rs. 30
• B. Rs. 32
• C. Rs. 33
• D. Rs. 32.5

Answer 1

The correct option is B Rs. 32

At equilibrium level aggregate demand is equal to aggregate supply. This is the state where the market forced demand and supply are same and there can be no change in the price. This is the state where the ideal market price is achieved. Hence, the equilibrium price is Rs. 32.