Exhibit 4-17

-In Exhibit 4-17,the market equilibrium changes from E' to E" because of:

Question

Exhibit 4-17
 
-In Exhibit 4-17,the market equilibrium changes from E' to E" because of:

Quizplus · Accepted Answer

An decrease in consumers' income would cause a decrease in demand, shifting the demand curve leftward from D' to D", causing a decrease in equilibrium price and quantity (from E' to E"). An increase in the price of alternative goods would also result in a decrease in demand for the original good, causing a leftward shift in the demand curve. This would cause equilibrium price and quantity to decrease further from E' to E".

Exhibit 4-17 -In Exhibit 4-17,the Market Equilibrium Changes from E' to E