Narrbegin Exhibit 4.2 Supply and demand curves
-The market shown in Exhibit 4.2 is initially in equilibrium at E₃. Changes in market conditions result in a new equilibrium at E₄. This change is stated as a/an:

Question

Narrbegin Exhibit 4.2 Supply and demand curves

-The market shown in Exhibit 4.2 is initially in equilibrium at E₃. Changes in market conditions result in a new equilibrium at E₄. This change is stated as a/an:

Quizplus · Accepted Answer

The new equilibrium at E₄ reflects both an increase in supply (represented by the shift of the supply curve to the right) and an increase in quantity demanded (represented by the movement along the demand curve to a higher quantity). Therefore, the correct answer is D, an increase in supply and an increase in quantity demanded.