FIGURE 4-3 -Refer to Figure 4-3.The diagram shows a rightward shift in the demand curve for some good,and the short-run and long-run supply curves (S_S and S_L,respectively).In the new short-run equilibrium after the increase in demand,producers' revenue A)is unambiguously lower than in the long-run equilibrium at E_L. B)could be higher or lower than at E₀,depending on the short-run elasticity of supply. C)is unambiguously higher than at E₀. D)is unambiguously lower than at E₀. E)is unambiguously higher than at E_L.

Question

Quizplus · Accepted Answer

In the short-run, the rightward shift in the demand curve leads to a higher price and quantity, increasing producers' revenue compared to the initial equilibrium at E₀.

FIGURE 4-3 -Refer to Figure 4-3.The Diagram Shows a Rightward Shift in Shift