Figure 2.4 -In Figure 2.4, If Demand Shifts from D₁ to D₂

question 109

Multiple Choice

Figure 2.4

-In Figure 2.4, 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 will move to G.
• C) demand has decreased and supply has increased.
• 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:

Express Warranties

Explicit promises made by a seller to a buyer regarding the quality or nature of a product.

Disclaimed

A statement that denies responsibility, affiliation, or connection to something.

Impossibility of Performance

A legal doctrine where a party may be released from a contract due to unforeseen events making fulfillment unfeasible.

Subject Matter Destroyed

A situation where the physical or substantive basis of a case or matter has been eliminated or rendered irrecoverable.