Demand and Supply - assume, ceteris paribus conditions apply to all questions below and begin each question with a new graph showing the following market equilibrium. In a small college town, assume that there is a competitive market for pizza. The equilibrium price is $10 per pizza and 100 pizzas are sold per day. a. What would likely happen to the price of pizzas, if a report from the CDC links the illness of several people to the cheese used by all producers of pizzas? Show this graphically. b. The U.S. enters a recession (negative growth in national income). What will happen to the price of pizza under this circumstance? Will this cause a surplus? Use a new graph to show this. c. The local college is going to play its big rival in soccer, the 2021 Division III national champions, Stormy Petrels, which brings in fans from all the surrounding towns. What will happen to the price of pizza? Will this cause a shortage of pizzas? Provide a graph to support your answer. d. Local hamburger restaurants run a two-for-one promotion - which effectively cuts price of burgers in half. What will happen to the price of pizzas? And the supply of pizzas? Provide a new graph to support your answer. e. Extra Credit The local city council wants to help poor college students who attend the local college. They vote to pass a city ordinance or law stating that pizzas can not be sold for more than $7.50 . What will be the impact on the market equilibrium for pizzas if this is successfully enforced? Support you answer with a graph. f. What would be the impact on the price of pizza, if both consumers and firms expected the price of pizzas to increase next week? And on the equilibrium quantity? Show this on a diagram. g. What will happen to the price of pizzas, if there is an innovation in pizza making equipment that cuts the labor and time needed to make a pizza and Chance the Rapper is hired to advertise pizzas? And the quantity of pizzas? h. EXTRA CREDIT Based on a study of the market for pizza in this town, an economist presents you with the following equations: P = 60 2 Q 0 and P = 30 + Q . Calculate the equilibrium quantity ( Q ) in the market and the market clearing price ( P ) . Show your work. .