FIGURE 3- 6
-Refer to Figure 3- 6. If the demand curve shifts from D1 to D2, while supply remains at S1, one could say that

Question

Quizplus · Accepted Answer

When the demand curve shifts from D1 to D2, it signifies an increase in demand for X. This leads to an increase in both price and quantity demanded, resulting in a movement from point A to point B along the supply curve S1. Option B is incorrect as there is no information provided about the price of a substitute good. Option C is incorrect as the new equilibrium point is at the intersection of D2 and S1, and there is no excess demand at that price. Option D is incorrect as the price increase is a result of the increase in demand and not the other way around. Option E is incorrect as the quantity demanded has increased to Q2 and the price has risen to P2.

FIGURE 3- 6 -Refer to Figure 3- 6. If the Demand Curve Shifts