Suppose that initially, demand is given by the equation Qd = 48 − 4P. If, as a result of an increase in income, the quantity demanded increases by 12 at every price, the new demand equation would be:
A) Qd = 60 − 4P.
B) Qd = 36 − 4P.
C) Qd = 48 − 16P.
D) Qd = 48 − 8P.

Question

Quizplus · Accepted Answer

The increase in quantity demanded by 12 at every price shifts the demand curve upward by 12 units, resulting in the new equation Qd = (48 + 12) − 4P = 60 − 4P.

Suppose That Initially, Demand Is Given by the Equation Qd