-In Exhibit C-9, the original market equilibrium is determined by D₁ and S₁. Suppose demand shifts to D₂. What will cause price to move to a new equilibrium?

Question

Quizplus · Accepted Answer

When demand shifts to the right (increases), it creates an excess demand at the original price. This excess demand leads to competition among buyers, pushing the price up until a new equilibrium is reached.

-In Exhibit C-9, the Original Market Equilibrium Is Determined by D1

-In Exhibit C-9, the Original Market Equilibrium Is Determined by D₁