Figure 10-9

-Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry.Assume the industry initially has supply curve S₁ and demand curve D₁
)If demand shifts to D₂, then in the short run price will

Question

Figure 10-9
 
-Figure 10-9 shows supply and demand conditions in a perfectly competitive industry and for a firm in that industry.Assume the industry initially has supply curve S₁ and demand curve D₁
)If demand shifts to D₂, then in the short run price will

Quizplus · Accepted Answer

In the short run, when demand shifts from D₁ to D₂, the increased demand will cause the price to rise to the new equilibrium point, which is at point A.

Figure 10-9 -Figure 10-9 Shows Supply and Demand Conditions in a Perfectly