Consider the Demand Curve Q^d = 40 - 2P

question 56

Multiple Choice

Consider the demand curve Q^d = 40 - 2P + 6i. If the value of i rises, the demand curve will

• A) not shift at all
• B) shift to the right
• C) shift to the left
• D) rotate so it becomes upward sloping

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Definitions:

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action or decision.

Production Possibility

An economic model that shows the maximum combination of goods or services that can be produced with a given set of resources.

Current State

The present condition or situation of a system, process, or subject of study.

Technology

The use of scientific understanding for functional aims, particularly within the industrial sector.