In the figure given below D₁ and S₁ are the initial demand and supply curves for a commodity in the market. Figure 3.3 Refer to Figure 3.3.If the change in the demand in this market occurred before the change in supply, then starting from the initial equilibrium:

Question

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If the change in demand occurred before the change in supply, the demand curve would shift to the right from D₁ to D₂, creating an immediate shortage at the initial equilibrium price P₁. The shortage would cause the price to increase until it reaches the new equilibrium price P₂, where the quantity demanded and supplied are equal again. The change in supply from S₁ to S₄ would have no effect on the market outcome as the equilibrium price and quantity have already adjusted to the increase in demand.

In the Figure Given Below D1 and S1 Are the Initial

In the Figure Given Below D₁ and S₁ Are the Initial