Consider the demand curve $Q ^ { d } = 1000 - 20 P - 6 r$ $Q ^ { d } = 40 - 2 P + 6 i$ . If the value of r falls, the demand curve will
A)shift to the left
B)shift to the right
C)remain unchanged
D)rotate along the quantity axis

Question

Quizplus · Accepted Answer

The demand curve $Q^d = 1000 - 20P - 6r$ shows that the quantity demanded is inversely related to $r$. If $r$ falls, the negative term $-6r$ becomes less negative, effectively increasing the quantity demanded for any given price $P$, which results in the demand curve shifting to the right.

Consider the Demand Curve Qd=1000−20P−6rQ ^ { d } = 1000 - 20 P - 6 rQd=1000−20P−6r

Consider the Demand Curve $Q ^ { d } = 1000 - 20 P - 6 r$