Question

1.During periods of rising income, what happens to demand for pizza? What happens to the proportion of income spent on pizza?

Answer 1

Ans. When the income rises, the demand of pizza may increase accordingly because pizza is one of the most consumed food throughout the world. So if income of a person increases , he is more likely to consume more pizza as compared to the amount he used to.

Though the proportion of the amount spent on pizza will be low because it is not a neccessity , so people will not waste more amount of money on it but yes they can spend some because they like it. So they will increase their demand for pizza with increase in their income but the proportion will not be distorted much due to being a unnecessary item and people not preffering to waste much on it.