Exhibit 3-9
-Refer to Exhibit 3-9.A wave of immigrants who love to consume X enters the country.An economist would expect a movement in the market for X from

Question

Exhibit 3-9 
-Refer to Exhibit 3-9.A wave of immigrants who love to consume X enters the country.An economist would expect a movement in the market for X from

Quizplus · Accepted Answer

Since the wave of immigrants loves to consume X, it means there is an increase in demand for X. As a result, the demand curve shifts to the right, from D₁ to D₂. The supply curve remains the same since nothing in the scenario suggests a change in the supply of X. Therefore, the new equilibrium point will be where the new demand curve (D₂) intersects with the initial supply curve, which is point B0 on the graph.

Exhibit 3-9 -Refer to Exhibit 3-9.A Wave of Immigrants Who Love to Who