Exhibit 3-4 -Refer to Exhibit 3-4. If S₂ and D₂ Are the D₂

question 24

Multiple Choice

Exhibit 3-4
-Refer to Exhibit 3-4. If S₂ and D₂ are the original supply and demand curves and, ceteris paribus, supply shifts to S₁,

• A)the quantity demanded decreases from Q₄ to Q₂.
• B)supply decreases.
• C)the quantity demanded increases from Q₂ to Q₄.
• D)the quantity supplied increases from Q₃ to Q₄.
• E)the equilibrium price falls from P₂ to P₁.