Question

The demand curve for pizza is downward sloping because

A. as the price of pizza rises, people will seek other, relatively cheaper alternatives, like hamburgers or tacos.
B. pizza is popular and there are more pizza parlors.
C. when fewer pizzas are produced, the money in people’s pizza budgets does not have to stretch as far.
D. when pizza prices rises, the price of other goods must also be rising, so people cannot afford to buy as much.

Answer 1

Answer:

The correct answer is A

Explanation:

The demand curve is downward sloping, it means or states that there exist the inverse relationship among the quantity demanded and the price. In other words, it states that when the price increases, the demand for the goods decreases whereas, when the price falls, the demand of the goods will increase.

So, the demand curve of pizza is downward sloping, it is because as the price of the pizza increases and people seek other alternatives, which is cheaper, which in turn decreases the demand of pizza.