Question 4 1 pts Exhibit 43 Supply and demand curves S2 Pric

Question 4 1 pts Exhibit 4-3 Supply and demand curves S2 Price Pa (dollars per unit) P2 E, P1 D2 Q2 QQ3Q Quantity of good X (units per time period) Beginning from an equilibrium at point E2 in Exhibit 4-3, an increase in demand for good X, other things being equal, would move the equilibrium point to: ? E2.

Solution

Q4. Answer is E3. Explanation: From Point E2 (at S2 supply curve) the demnd increase, the demand curve shift upward. Resulting in upward shift of equilibrium point at E3. Q5. Answer is E1 to E4. Explanation: The original supply curve is S1. and emand curve is D1. and the equilibrium point is E1. The effect is decrease in demand to D2 and increase in Supply to S2. Hence, the shift in equilbrium point to E4.