Answer to Question #157784 in Microeconomics for bharadwaz

Question

1. Make up an example of a monthly demand schedule for pizza and graph the implied demand

curve. • Give an example of something that would shift this demand curve, and briefly

explain your reasoning. • Would a change in the price of pizza shift this demand curve?

Answer 1

Let’s assume below is the demand schedule for pizza during the month of January.

 The above demand curve shows a high demand for pizza when the price is at $5. Demand curve might shift if a substitute product like Shawarma is introduced into the market. People might demand more of Shawarma if its price is lower than that of pizza. Thus the demand curve of pizza will shift to the left due to a decrease in quantity demanded of pizza. Price of pizza can also shift the demand curve either to the left or right. When the pizza price decreases, demand will increase, leading the demand curve to shift to the right and vice versa.