DEMAND IN-CLASS WORKSHEET 2 This question examines the market for slices of pizza. You will construct a
Question:
DEMAND
IN-CLASS WORKSHEET 2
This question examines the market for slices of pizza. You will construct a demand curve from a demand schedule and explore the relationship between the price of a slice of pizza, the price of a burrito (a substitute good), and the quantity of pizza slices demanded by consumers.
The relationship between the price of a slice of pizza, the price of a burrito (a substitute good), and the quantity of pizza slices demanded is provided by the demand schedule below.
| Price (dollars) | Quantity of Pizza Slices Demanded (when the price of a burrito is $5.00) | Quantity of Pizza Slices Demanded (when the price of a burrito is $7.00) |
| $12.00 | 10 | 20 |
| 10.00 | 20 | 30 |
| 8.00 | 30 | 40 |
| 6.00 | 40 | 50 |
| 4.00 | 50 | 60 |
Task 1: In the space below, in black ink, sketch out the demand curve for slices of pizza when the price of a burrito is $5.00. Remember to place “Quantity of Pizza Slices Demanded” on the horizontal axis and “Price (dollars)” on the vertical axis. Hint: This demand curve is a straight line.
Task 2: In the space above, in blue ink, sketch out the demand curve for slices of pizza when the price of a burrito is $7.00. Hint: This demand curve is a straight line.
Task 3: When the price of a substitute, like burritos, increases, does the demand for the good in question shift to the right or the left?
Expert Answer:
Based on the information you provided here are the answers to your questions Task 1 The demand curve ... View the full answer
