Ocean Rollins & Amy Reyes
An Example of equilibrium
600 slices of pizza are being demanded and the maximum price we can charge is $1.50 each. We have enough pizza (quantity supplied: 1000) to supply the demand of our consumers (quantity demanded: 600). So this means the consumers are buying enough pizza to cover our costs to produce the pizza and to make profit off of it. And since we are making what is being demanded (the demand curve meets the supply curve) there will be no excess pizza (surplus) and we know that were not short on pizza (shortage).
This chart shows exactly how our pizza supply works with the demand.The quantity and the price line up to fit the producers needs as well as the consumer's. Were selling enough to make profit and enough to feed the customer. (600 slices for $1.50 each)