-The Figure Above Shows the Supply and Demand for Pizza

question 5

Essay

-The figure above shows the supply and demand for pizza.
a.What is the efficient level of output?
b.If 70,000 pizzas are produced,what area represents the deadweight loss?
c.Why does the deadweight loss in part (b)occur?
d.If 20,000 pizzas are produced,what area represents the deadweight loss?
e.Why does the deadweight loss in part (d)occur?

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Definitions:

Hierarchical

Relating to a system where people or things are organized into levels of importance or rank.

Social Communication

The process of exchanging information and ideas through interactive dialogue between individuals or groups.

Permission

Consent or authorization given by one party to another to perform actions or access information.

Unidirectional

Communication or a process that moves in a single direction, from sender to receiver, without feedback or interaction.