Suppose the Demand for Fabric Softener Can Be Described as Q^D

question 86

Multiple Choice

Suppose the demand for fabric softener can be described as Q^D = 800 - P - P_D, where Q^D is the quantity of fabric softener demanded, P is the price of fabric softener, and P_D is the price of laundry detergent. Suppose that the price of detergent is initially 10 but increases to 15. The new equation for the demand of fabric softener is:

• A) 785 - P, and demand has shifted to the left.
• B) 785 - P, and demand has shifted to the right.
• C) 815 - P, and demand has shifted to the left.
• D) 815 - P, and demand has shifted to the right.

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