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

Let the consumer only consume pizza in each weekend day in the whole month

price	qty. demanded of pizza
60	0
50	1
40	2
30	3
20	4
10	5
0	6

we know that there is an inverse relationship between demand and price.

A shift in the demand curve can be caused by -----

1) change in price of other good

2) changes in income

3) change in taste and preferences

4) changes in the expectation

I will talk about the 4th one i.e. changes in the expectation. In the current scenario of COVID-19, it is required to maintain social distancing to not get affected by the virus. Now if the delivery of pizza is going on then there will be some expectation in the mind of the consumer that the delivery boy might not be following social distancing as they have to make contact with so many customers. Hence a negative expectation arises that might lead to an increase in the chance of getting affected by the virus. Now, the less consumer will demand pizza at every price. Hence the demand curve of pizza will shift right at every price.

A change in the price of pizza itself cannot shift the demand curve but it will change the quantity demanded.

This mean that if the equilibrium price earlier is $ 30 then the qty. demanded is 3 but if the price changes to $40 then qty. demanded will change to 2. that is there will be the only movement along the demand curve. no shift .