Answer to Question #183159 in Microeconomics for Saman Khalil

Question

Makeup an example of a monthly demand schedule for pasta 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 pasta shift this demand curve

Answer 1

Answer.

When a new product, for example, Spaghetti is introduced into the market, it will attract more attention to consumers since it is similar to Pasta. Due to this, Pasta will lose its consumers. Therefore, the demand for Spaghetti increases, and the demand curve shifts to the right.

A change in the price of pasta will not shift this demand curve. There would be a movement along this demand curve. If there is a change in price, the supply curve will change.

Monthly demand schedule for pasta.