Exhibit 4-2 Supply and demand curves
-The market shown in Exhibit 4-2 is initially in equilibrium at E₁. Changes in market conditions result in a new equilibrium at E₂. This change is stated as a(n) :

Question

Exhibit 4-2 Supply and demand curves

-The market shown in Exhibit 4-2 is initially in equilibrium at E₁. Changes in market conditions result in a new equilibrium at E₂. This change is stated as a(n) :

Quizplus · Accepted Answer

An increase in supply leads to a lower price, which increases the quantity demanded, moving the equilibrium from E1 to E2.

Exhibit 4-2 Supply and Demand Curves ​

Exhibit 4-2 Supply and Demand Curves