In the figure given below D1 and S1 are the original demand and supply curves. Figure 3.1
Refer to Figure 3.1.If demand shifts from D1 to D2 and supply shifts from S1 toS2:
A) equilibrium price will rise to F, but equilibrium quantity will remain at B
B) equilibrium price will move to C and equilibrium quantity to G
C) demand will decrease and supply will increase.
D) equilibrium price will rise to G, and equilibrium quantity will remain at B
E) both equilibrium price and equilibrium quantity will decrease.
Correct Answer:
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