Suppose That Initially, the Equations for Demand and Supply Are

question 46

Multiple Choice

Suppose that initially, the equations for demand and supply are Qd = 48 − 4P and Qs = 4P − 16, respectively. If the quantity demanded increases by 12 at every price (so that the demand curve shifts to the right) , the equilibrium price will change from:

• A) $8 to $9.50.
• B) $8 to $12.
• C) $12 to $9.5.
• D) $9.50 to $8.