The Demand and Supply Functions for Pizza in the Local

question 162

Essay

The demand and supply functions for pizza in the local market are: Q_D = 20,000 - 833P and
Q_S = 5,000 + 417P. Calculate consumer and producer surplus in this market. If the minimum wage is increased by $2 per hour, the new market supply curve becomes: Q'_S = 4,000 + 417P. Calculate the loss in consumer and producer surplus in the pizza market due to this change.

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Definitions:

Acculturation

Cultural changes that occur when one culture comes in contact with another culture.

African American

A term referring to citizens or residents of the United States who have total or significant partial ancestry from any of the black racial groups of Africa.

Poverty

A condition or state where an individual or group lacks the financial resources and essentials for a minimum standard of living.

Percent

A mathematical term describing a number expressed as a fraction of 100, used to indicate proportions.