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Exhibit 4-3 Supply and Demand Curves

Question 167

Multiple Choice

Exhibit 4-3 Supply and demand curves Exhibit 4-3 Supply and demand curves -Initially the market shown in Exhibit 4-3 is in equilibrium at P<sub>2</sub>, Q<sub>2</sub> (E<sub>2</sub>) . Changes in market conditions result in a new equilibrium at P<sub>2</sub>, Q<sub>4</sub> (E<sub>4</sub>) . This change is stated as a(n) : A) increase in supply and an increase in demand. B) increase in supply and a decrease in demand. C) decrease in demand and a decrease in supply. D) increase in demand with supply held constant at S<sub>2</sub>.
-Initially the market shown in Exhibit 4-3 is in equilibrium at P2, Q2 (E2) . Changes in market conditions result in a new equilibrium at P2, Q4 (E4) . This change is stated as a(n) :


A) increase in supply and an increase in demand.
B) increase in supply and a decrease in demand.
C) decrease in demand and a decrease in supply.
D) increase in demand with supply held constant at S2.

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