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 has shifted to the right (from D₁ to D₂), indicating an increase in demand for the product, while the supply curve has shifted to the right (from S₁ to S₂), indicating an increase in supply. Therefore, market supply and market demand have both increased.

Exhibit 4-6 Demand and Supply Curves