how does the increase or decrease in the value of r (intrinsic rate of natural increase) affect population size ?

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Solution

The 'r' means intrinsic rate of natural increase. It is a measure of the instantaneous rate of change of population size.
Increase in value of r (when the value of r is positive) indicates that the population size of a species has increased during the particular period. Decrease in value of r (when the value of r is negative) indicates that the population size of a species has decreased during the particular period.

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