Narrbegin Exhibit 4.3 Demand and supply curves
-In Exhibit 4.3, the demand curve has shifted from D₁ to D₂ and, simultaneously, the supply curve has shifted from S₁ to S₂. Describe these actions in this market.

Question

Narrbegin Exhibit 4.3 Demand and supply curves

-In Exhibit 4.3, the demand curve has shifted from D₁ to D₂ and, simultaneously, the supply curve has shifted from S₁ to S₂. Describe these actions in this market.

Quizplus · Accepted Answer

Both the demand and supply curves have shifted to the right, indicating an increase in both market demand and market supply. This could be due to factors such as an increase in consumer income, decreased production costs, or improved technology. As a result, the equilibrium quantity has increased while the equilibrium price remains the same or may have increased or decreased depending on the magnitude of the shifts. Overall, the market has experienced an increase in both demand and supply.