In the Figure Given Below, D₁ and S₁ Are the Original

question 3

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 to S₂:

• 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.

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Definitions:

Macaroni and Cheese

Macaroni and cheese is a popular dish made primarily of cooked macaroni pasta and a cheese sauce, often served as a comfort food.

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price, indicating how changes in price affect sales volume.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Price Elasticity

A measure of responsiveness of the quantity demanded or supplied of a good to a change in its price, indicating how changes in price affect demand or supply levels.