Multiple Choice
-Refer to the above graph to answer this question.How could you describe the movement from point A to point B?
A) An increase in demand which leads to a decrease in the equilibrium price and an increase in supply.
B) An increase in supply which leads to an increase in the equilibrium price and an increase in demand.
C) An increase in demand which leads to an increase in the equilibrium price and an increase in the quantity supplied.
D) An increase in supply which leads to an increase in the equilibrium price and an increase in the quantity demanded.
E) An increase in demand which leads to an increase in supply and an increase in the equilibrium price.
Correct Answer:
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