Exhibit 4-2 Supply and Demand Curves

Exhibit 4-2 Supply and demand curves

-The market shown in Exhibit 4-2 is initially in equilibrium at E₃.Changes in market conditions result in a new equilibrium at E₄.This change is stated as a(n) :

A) increase in demand and an increase in supply.
B) decrease in demand and a decrease in quantity supplied.
C) increase in quantity demanded and an increase in quantity supplied.
D) decrease in supply and a decrease in quantity demanded.
E) increase in supply and an increase in quantity demanded.