Question

The figure above illustrates a linear demand curve. If the price falls from $8 to $6increasesdecreasesundecreasesthe 20 percent

Answer 1

From the demand curve, the price falls from $8 to $6.

`\begin{gathered} \text{When the price was \$8, the quantity demanded was }10\text{ units} \\ When\text{ the price was \$6, the quantity demanded was 20 units} \end{gathered}`

This shows that as the price dropped, the quantity demanded increased from 10units to 20units.

Hence, as the price falls from $8 to $6, the demand increases