Exhibit 4-3 Supply and demand curves Price Ps (dollars per unit) P₂ P₁ O 1 w E Q₂ Q₁ LL Li Q₁ Q₁ Quantity of good X (units per time period) 5 The market shown in Exhibit 4-3 is initially in equilibrium at E4. Changes in market conditions result in a new equilibrium at E3. This change is stated as a(n): increase in supply and an increase in quantity demanded. increase in supply and a decrease in demand. decrease in supply and a decrease in quantity demanded. increase in demand an increase in supply.

Exhibit 4-3 Supply and demand curves Price Ps (dollars per unit) P₂ P₁ O 1 w E Q₂ Q₁ LL Li Q₁ Q₁ Quantity of good X (units per time period) 5 The market shown in Exhibit 4-3 is initially in equilibrium at E4. Changes in market conditions result in a new equilibrium at E3. This change is stated as a(n): increase in supply and an increase in quantity demanded. increase in supply and a decrease in demand. decrease in supply and a decrease in quantity demanded. increase in demand an increase in supply.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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