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?