In the Figure Given Below D₁ and S₁ Are the Original

question 65

Multiple Choice

In the figure given below D₁ and S₁ are the original demand and supply curves.
Figure 3.1

-Refer to Figure 3.1. If demand shifts from D₁ to D₂ and supply shifts from S₁ toS₂:

• A) equilibrium price will rise to F, but equilibrium quantity will remain at B
• B) equilibrium price will move to C and equilibrium quantity to G
• C) demand will decrease and supply will increase.
• D) equilibrium price will rise to G, and equilibrium quantity will remain at B
• E) both equilibrium price and equilibrium quantity will decrease.

---

Definitions:

Reserve Clause

A term used in sports contracts allowing a team to retain the rights to a player after the contract expires.

Monopsony Power

A market condition where there is only one buyer for many sellers, giving the buyer significant control over prices and terms.

Antitrust Prosecution

Legal action taken against companies or entities suspected of engaging in practices that restrict competition, violating antitrust laws designed to protect free trade and competition.

Right To Work Laws

Legislation that prohibits agreements between labor unions and employers that make membership or payment of union dues or fees a condition of employment, either before or after hiring.