The following figure shows the demand and supply curves for a good. The initial demand curve is D₁ and the supply curve is S. Later, due to an external shock, the demand curve shifts to D₂.

-Refer to the figure above.What is the initial equilibrium quantity of the good?
A) 20 units
B) 30 units
C) 35 units
D) 50 units

Question

The following figure shows the demand and supply curves for a good. The initial demand curve is D₁ and the supply curve is S. Later, due to an external shock, the demand curve shifts to D₂.
 
-Refer to the figure above.What is the initial equilibrium quantity of the good?
A) 20 units 
B) 30 units 
C) 35 units 
D) 50 units

Quizplus · Accepted Answer

The initial equilibrium quantity is the quantity at which the supply curve and demand curve intersect. In the figure, this occurs at a quantity of 20 units.

The Following Figure Shows the Demand and Supply Curves for a Good