Respuesta :
Answer:
increase due to the income effect. i
Explanation:
When the price of a good changes, two effects affects the change in quantity demanded :
1. The income effect
2. the substitution effect
The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant.
the substitution effect arises when as a result of a rise in the price of a good, the good becomes more expensive relative to its substitutes. Consumers not consume less of the good and more of the substitute. This leads to a movement up along the demand curve for that goods and not a movement along the demand curve for the good and not a shift of the demand curve.
If the price of the good decreases. The good becomes cheaper when compared with substitutes. As a result, the demand for the good increases while that of the substitutes decreases.
When the price of pizza decreases, holding the consumer's income constant, the purchasing power of Tonya increases. As a result, of the income effect, the demand for pizza increases
