Answer:
the income effect and substitution effect will work in the SAME direction and the demand curve will be STEEPER than if pizza were an inferior good.
Explanation:
Since the price of pizza is decreasing, the quantity demanded of pizza will increase, i.e. both income effect and substitution effect work in the same direction increasing the quantity demanded. This will cause the demand curve for pizza to be really steep.
A normal good is a good whose demand increases when consumer income increases. While an inferior good is a good whose demand decreases when consumer income increases.
The income effect states that a price change will affect consumer income, if the price decreases, a consumer with a fixed income will be able to purchase a larger amount of goods.
The substitution effect states that an increase in the price of a good will increase the quantity demanded for alternative or substitute goods.
