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 A. If supply shifts from S₁ to S₂, 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 A. If supply shifts from S₁ to S₂, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.

Quizplus · Accepted Answer

When supply shifts from S1 to S2, the new equilibrium is determined by the intersection of the new supply curve S2 and the demand curve. This results in a higher price of $7.00 and a new equilibrium quantity of 7.

Refer to the Information Provided in Figure 3