Exhibit 4-3 Supply and demand curves

-Beginning from an equilibrium at point E₂ in Exhibit 4-3,an increase in demand for good X,other things being equal,would move the equilibrium point to:

Question

Exhibit 4-3 Supply and demand curves
 
-Beginning from an equilibrium at point E₂ in Exhibit 4-3,an increase in demand for good X,other things being equal,would move the equilibrium point to:

Quizplus · Accepted Answer

An increase in demand for good X, other things being equal, would lead to a rightward shift in the demand curve (from D₁ to D₂). This would cause an increase in the equilibrium quantity (from Q₂ to Q₃) and an increase in the equilibrium price (from P₂ to P₃), leading to a new equilibrium point E₃. Therefore, the answer is choice C.

Exhibit 4-3 Supply and Demand Curves