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

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:

Quizplus · Accepted Answer

An increase in demand would shift the demand curve to the right, causing an increase in both equilibrium price and quantity. The new equilibrium point would be where the new demand curve intersects with the original supply curve, which is at E₃.

Exhibit 4-3 Supply and Demand Curves