Exhibit 4-6 Demand and supply curves

In Exhibit 4-6, the demand curve has shifted from D₁ to D₂ and, simultaneously, the supply curve has shifted from S₁ to S₂. Describe these actions in this market.

Question

Exhibit 4-6 Demand and supply curves

In Exhibit 4-6, the demand curve has shifted from D₁ to D₂ and, simultaneously, the supply curve has shifted from S₁ to S₂. Describe these actions in this market.

Quizplus · Accepted Answer

The demand curve shifting to the right indicates an increase in market demand, while the supply curve shifting to the right indicates an increase in market supply. Therefore, the correct choice is D.

Exhibit 4-6 Demand and Supply Curves