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23 February, 17:09

John's Pizzeria and Equilibrium John is selling his pizza for $6 per slice in an area of high demand. However, customers are not buying his pizza. Using what you learned about the principles of equilibrium, write three to four sentences about how John could solve his problem.

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  1. 23 February, 18:24
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    If John's Pizzeria is located in an area of high demand and he is not selling his pizzas, it means that he is doing something wrong. There are two possible options:

    the price is too high: John should try to lower the price of his pizza. Currently John has a surplus production of pizza, because he is producing much more pizza than what he is actually selling. To increase his sales, John should try to lower the price and see how many pizzas he sells at $5, or even at $4. The only way that John can reach an equilibrium between his supply of pizza and the quantity demanded is to lower the price. the pizza tastes terrible: the only option is to make a better pizza.
  2. 23 February, 18:44
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    Since John is selling his pizza for six dollars a slice and people are not buying it; he has an excess in supply. Customers may not be coming to his shop because his prices are too high. So, he should decrease the price of a slice of pizza to bring in more customers. Which would get rid of the excess supply and make the supply and demand equal.
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