Question

College students often buy cheap pizza because it’s more affordable. Suppose after graduating, college students find high paying jobs. The demand for cheap pizza will likely:

a) increase because demand for cheap pizza is positively related to income.

b) increase because demand for cheap pizza is negatively related to income.

c) decrease because demand for cheap pizza is positively related to income.

d) decrease because demand for cheap pizza is negative related to income.

Answer 1

D) The demand for cheap pizza will decrease because demand for cheap pizza is negative related to income.

As students finds high paying job, they are now able to buy more expensive pizza, which means that a number of customers for cheap pizza will be decreased