Exhibit 4-2 Supply and Demand Curves

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) :

A) increase in supply and an increase in quantity demanded.
B) increase in supply and a decrease in demand.
C) decrease in supply and a decrease in quantity demanded.
D) increase in demand and an increase in supply.