Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19
-Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S₂ to S₁, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Question

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.

Figure 3.19
-Refer to Figure 3.19. The market is initially in equilibrium at Point B. If supply shifts from S₂ to S₁, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Quizplus · Accepted Answer

An increase in supply will shift the supply curve to the right, from S2 to S1. This will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity. The new equilibrium price will be $5.00 and the new equilibrium quantity will be 10.

Refer to the Information Provided in Figure 3