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Figure: The Demand and Supply of Wheat
-(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If there is an increase in demand of 2,000 bushels at each price, the equilibrium price and quantity will be _____ and _____ bushels, respectively.
A)$5; 5,000
B)$6; 7,000
C)$7; 7,000
D)$8; 8,000

Question

Use the following to answer questions :
Figure: The Demand and Supply of Wheat 
-(Figure: The Demand and Supply of Wheat) Look at the figure The Demand and Supply of Wheat. If there is an increase in demand of 2,000 bushels at each price, the equilibrium price and quantity will be _____ and _____ bushels, respectively.
A)$5; 5,000 
B)$6; 7,000 
C)$7; 7,000 
D)$8; 8,000

Quizplus · Accepted Answer

An increase in demand shifts the demand curve to the right. As a result, the equilibrium price and quantity will increase. In this case, the demand curve shifts to the right by 2,000 bushels at every price, resulting in a new equilibrium at a higher price and higher quantity. Using the figure, we can see that the new equilibrium price is $7 and the new equilibrium quantity is 7,000 bushels. Therefore, the answer is C.

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