The following figure shows the market for grapefruit (in kilos):

-Refer to the diagram above to answer this question.If buyers think that the price of grapefruits is going to rise,causing the demand to change by 6 kilos,what will be the new equilibrium price and quantity?
A)$2.50 and 28 kilos
B)$2.75 and 26 kilos
C)$2.50 and 26 kilos
D)$3.00 and 36 kilos

Question

The following figure shows the market for grapefruit (in kilos):
 
-Refer to the diagram above to answer this question.If buyers think that the price of grapefruits is going to rise,causing the demand to change by 6 kilos,what will be the new equilibrium price and quantity?
A)$2.50 and 28 kilos 
B)$2.75 and 26 kilos 
C)$2.50 and 26 kilos 
D)$3.00 and 36 kilos

Quizplus · Accepted Answer

If buyers expect the price to rise, demand increases. The new equilibrium is where the increased demand curve intersects the supply curve, which is at $3.00 and 36 kilos.

The Following Figure Shows the Market for Grapefruit (In Kilos)