Exhibit 4-8 Demand and supply curves

-In Exhibit 4-8, a movement from A to B in which price has decreased and quantity has increased is best explained by a(n):

Question

Exhibit 4-8 Demand and supply curves
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-In Exhibit 4-8, a movement from A to B in which price has decreased and quantity has increased is best explained by a(n):

Quizplus · Accepted Answer

A movement from A to B, where price decreases and quantity increases, is best explained by an increase in supply that dominates a decrease in demand. This results in a lower equilibrium price and a higher equilibrium quantity.

Exhibit 4-8 Demand and Supply Curves