Exhibit 4-3 Supply and demand curves
-Initially the market shown in Exhibit 4-3 is in equilibrium at P₃, Q₃ (E₃) . Changes in market conditions result in a new equilibrium at P₂, Q₂ (E₂) . This change is stated as a:

Question

Exhibit 4-3 Supply and demand curves

-Initially the market shown in Exhibit 4-3 is in equilibrium at P₃, Q₃ (E₃) . Changes in market conditions result in a new equilibrium at P₂, Q₂ (E₂) . This change is stated as a:

Quizplus · Accepted Answer

A decrease in demand leads to a lower equilibrium price and quantity, which corresponds to a decrease in quantity supplied at the new equilibrium.

Exhibit 4-3 Supply and Demand Curves