TABLE 4-2

-Refer to Table 4-2. Suppose that D₁ and S₁ are the prevailing demand and supply curves for a product. What happens in the market if the demand schedule changes from D₁ to D₂?

Question

TABLE 4-2
 
-Refer to Table 4-2. Suppose that D₁ and S₁ are the prevailing demand and supply curves for a product. What happens in the market if the demand schedule changes from D₁ to D₂?

Quizplus · Accepted Answer

Moving from demand curve D₁ to D₂ increases the quantity demanded at every price level, shifting the demand curve rightward. The equilibrium price and quantity will both increase as a result. Therefore, the correct answer is C.

TABLE 4-2 -Refer to Table 4-2. Suppose That D₁ and S₁ Are