An increase in the price of pizza will shift the demand curve for pizza to the left

The answer is b. False

There are different determinants or factors which affect the demand for a good. These factors are:

• Own price of the good
• The price of the related goods ,i.e., the price of substitute goods or price of complementary goods.
• Expectation about future price change
• The income of the consumers.
• The taste and preferences of the consumers.
• Population
• Advertisement expenditure by the company

Any change in own price of a good leads to change in quantity demanded of the good. The change in quantity demanded of a good is represented by a movement along the demand curve. The law of demand states that there is an inverse relationship between own price of good and its quantity demanded (other factors remain unchanged).

Any change in the factors other than own price leads to change in demand for the good. The change in demand is represented by a shift in the demand curve. An increase in demand is represented by rightward shift and a decrease in demand is represented by a leftward shift in the demand curve.

Thus, an increase in the price of pizza will lead to leftward movement along the demand curve and not the shift of demand curve for pizza.

Therefore, the statement is false.