Exhibit 4-2 -Refer to Exhibit 4-2. If the supply curve shifts to the right, then which of the following is true? A)D₁ results in the most decrease in the equilibrium price. B)D₁ results in the most increase in the equilibrium price. C)D₂ results in the most decrease in the equilibrium price. D)D₂ results in the most increase in the equilibrium price. E)The change in the equilibrium price is the same for D₁ and D_2.

Question

Quizplus · Accepted Answer

When the supply curve shifts to the right, it indicates an increase in supply. This typically leads to a decrease in the equilibrium price because there is more of the good or service available at every price level. Therefore, the option that suggests the most decrease in the equilibrium price is correct.

Exhibit 4-2 -Refer to Exhibit 4-2. If the Supply Curve Shifts to Curve