Answer to Question #177369 in Microeconomics for umer

Question

Make up an example of a monthly demand schedule for pizza, and graph the 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

a)A demand schedule is a table that depicts the amounts of a product or service demanded at various prices over time. The demand schedule outlines how many units of pizza are bought at each price point.

Normally, as a product's price goes up, demand for it decreases. Demand goes up as the price falls. Other variables, on the other hand, can cause the demand curve to change to the right, implying greater demand, or to the left, signaling reduced demand.

b)There are significant factors that cause a shift in the demand curve: changes in income, preferences and tastes, inflation rates, prices of related goods and their quality, size and composition of the population as well as advertising which builds on brand image as the best there is.

The curve shifts to the left if the determinant causes demand to drop. That implies that at any price point, less of the good or service is needed. When buyers' incomes fall during a recession, this occurs. Even if the price is the same, they would buy less of it.

c)Change in the price of pizza wouldn't shift the demand curve. While the quantity will change, the demand curve will remain the same. Price changes only cause a movement along the demand or supply curve . Since a customer will actually demand less quantity at higher price levels, we pass down the demand curve to a lower level of quantity. At all price levels, a change in price does not cause a change in demand .