Refer to the information provided in Figure 3.18 below to answer the question(s) that follow. Figure 3.18
-Refer to Figure 3.18. The market is initially in equilibrium at Point B. If demand shifts from D₂ to D₁, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Question

Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.

Figure 3.18
-Refer to Figure 3.18. The market is initially in equilibrium at Point B. If demand shifts from D₂ to D₁, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Quizplus · Accepted Answer

When demand shifts from D2 to D1, the demand curve shifts leftward, leading to a lower equilibrium price and quantity. The new equilibrium is at the intersection of the new demand curve D1 and the supply curve, which corresponds to a price of $3.00 and a quantity of 250.

Refer to the Information Provided in Figure 3