Exhibit 4-3 Demand and supply curves

-If the market demand and supply curves shift as given in Exhibit 4-3,the resulting new equilibrium will show a/an:

Question

Exhibit 4-3 Demand and supply curves
 
-If the market demand and supply curves shift as given in Exhibit 4-3,the resulting new equilibrium will show a/an:

Quizplus · Accepted Answer

The shift in demand to the left shows a decrease in the quantity demanded at any given price. Similarly, the shift in supply to the right shows an increase in the quantity supplied at any given price. The new equilibrium point is where the new demand and supply curves intersect, which results in a decrease in market price and an increase in the quantity exchanged. Therefore, D is the correct answer.

Exhibit 4-3 Demand and Supply Curves