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 to S₂:
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.

Question

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 to S₂:
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.

Quizplus · Accepted Answer

The Answer of 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 to S₂:
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.

In the Figure Given Below, D₁ and S₁ Are the Original