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Figure 9.6
-(Figure 9.6) What happens to the profit-maximizing price and quantity following the change in the demand curve from D₁ to D₂?

Question

Use the following to answer question: Figure 9.6 -(Figure 9.6) What happens to the profit-maximizing price and quantity following the change in the demand curve from D₁ to D₂?

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According to the graph, the new demand curve D₂ intersects with the original supply curve at a quantity of approximately 333 units and a price of approximately $4. Therefore, the profit-maximizing quantity increases from 300 to 333 units, and the profit-maximizing price falls from $5 to approximately $4.

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