Exhibit 4-3 Supply and demand curves

-Initially the market shown in Exhibit 4-3 is in equilibrium at P₃,Q₃ (E₃).Changes in market conditions result in a new equilibrium at P₂,Q₂ (E₂).This change is stated as a(n):

Question

Exhibit 4-3 Supply and demand curves
 
-Initially the market shown in Exhibit 4-3 is in equilibrium at P₃,Q₃ (E₃).Changes in market conditions result in a new equilibrium at P₂,Q₂ (E₂).This change is stated as a(n):

Quizplus · Accepted Answer

The movement from E₃ to E₂ indicates a decrease in demand, leading to a lower equilibrium price and quantity, and a corresponding decrease in quantity supplied due to the lower price.

Exhibit 4-3 Supply and Demand Curves