Question

Make up an example of a monthly demand schedule for pizza. 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

The demand schedule of pizza is given by the sum of all the individual demands in the economy

When the factor present is only price then there is movement on the demand curve

The movement can be either upward or downward but there will be no shift

If more than the price factors are present like

Income level of a consumer

Presence of substitutes in the market

Expectation level of consumers

Taste and preferences then there is shift on the demand curve

In the case of pizza example,the shifters can be income level of consumers

Let say people have now lower income then this will cause lower consumption of pizza as well and causes the shift of demand curve to the left