You have decided to purchase a new Range Rover SUV. A friend tells you that Land Rover will stop offering a $3000 rebate on Range Rovers starting next month. As a result of this information, what will happen to your demand curve for Range Rovers?

Question

Quizplus · Accepted Answer

The anticipation of losing a $3000 rebate next month increases the attractiveness of purchasing a Range Rover now, leading to an increase in demand today. This is represented by a rightward shift in the demand curve.

You Have Decided to Purchase a New Range Rover SUV