Exhibit 4-3 Supply and demand curves Beginning from an equilibrium at point E₂ in Exhibit 4-3, an increase in demand for good X, other things being equal, would move the equilibrium point to:

Question

Quizplus · Accepted Answer

An increase in demand for good X would shift the demand curve to the right, causing the equilibrium point to move to a higher quantity and higher price. This would result in a new equilibrium point at E₃, where the quantity supplied and quantity demanded meet at a higher price.

Exhibit 4-3 Supply and Demand Curves Beginning from an Equilibrium