JSJ\rO-O- 0\rOPOP\r)\rg 8\r'c\rQ- 6\r4 Do Di\r2\r0 200 400 600 800 1,000 1,200\rQuantity (pizzas per week)\rc) The report predicts that the news will change consumer preferences in favor of pizza,\rwhich will "increase the quantity of pizza demanded by 150 at each price." The increase in\rdemand means the demand curve shifts rightward by 150 pizza at every price, as illustrated in\rthe above figure by the shift from D()to D\. The equilibrium price is $9 and quantity is 700.\rWhen the demand curve shifts, at the old price, $8, there is a shortage of 150 pizzas and\rtherefore the price rises bringing the market to equilibrium at $9.\rTopic: Predicting Changes in Price and Quantity\rSkill: Analytical\rAACSB: Analytical Skills
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