The Following Questions Refer to the graph below.
-If the market starts in equilibrium with D₁ and S₁,and more consumers develop a preference for Dr. Pepper, the new equilibrium price and quantity are

Question

The Following Questions Refer to the graph below.

-If the market starts in equilibrium with D₁ and S₁,and more consumers develop a preference for Dr. Pepper, the new equilibrium price and quantity are

Quizplus · Accepted Answer

If more consumers develop a preference for Dr. Pepper, the demand curve shifts to the right, from DS1 to DS2. This shifts the equilibrium point from point A to point B, where the new equilibrium quantity is 65 and the new equilibrium price is 10. Therefore, the answer is C.

The Following Questions Refer to the Graph Below