Suppose that your demand schedule for pizza is as follows: At a price of \$10 per pizza, you demand 2 pizzas per week; at \$8, you demand 4 pizzas; at \$6, you demand 6 pizzas; and at \$4, you demand 8 pizzas. Which of the following statements best describes the shape of your demand curve for pizza?

• A. It is upward sloping, indicating that quantity demanded increases as price increases.
• B. It is perfectly vertical, indicating that quantity demanded does not change with price.
• C. It is downward sloping, indicating that quantity demanded increases as price decreases.
• D. It is perfectly horizontal, indicating that price does not change with quantity demanded.

Answer: (C)

Verified step by step guidance

1. Identify the relationship between price and quantity demanded from the given data: as the price decreases from \$10 to \$4, the quantity demanded increases from 2 to 8 pizzas.
2. Recall the law of demand, which states that, ceteris paribus, quantity demanded moves inversely with price, meaning demand curves typically slope downward.
3. Plot the points (Price, Quantity) on a graph to visualize the demand curve: (10, 2), (8, 4), (6, 6), and (4, 8).
4. Observe the slope of the demand curve by connecting these points; since quantity demanded increases as price decreases, the curve slopes downward from left to right.
5. Conclude that the demand curve is downward sloping, which aligns with the statement that quantity demanded increases as price decreases.