Refer to the above table. If demand decreased by 4 units at each price and supply decreased by 2 units at each price, what would the new equilibrium price and quantity be?

Question

Quizplus · Accepted Answer

Starting from the original equilibrium of $5 and 6 units, a decrease in demand by 4 units at each price would shift the demand curve leftward to D2, intersecting with the original supply curve at a new equilibrium price of $4. Similarly, a decrease in supply by 2 units at each price would shift the supply curve upward to S2, intersecting with the new demand curve at a new equilibrium quantity of 4 units. Therefore, the new equilibrium price and quantity would be $4 and 4 units, respectively.

Refer to the Above Table