Assume the Market in the Graph Shown Was Originally at an Equilibrium

question 20

Multiple Choice

Assume the market in the graph shown was originally at an equilibrium with demand D and supply S. Suppose Demand shifts and becomes D₂. What might have caused such a shift?

• A) The good became more popular.
• B) People expect the price of this good to drop in the near future.
• C) The good became cheaper to produce.
• D) Substitutes for this good became less expensive.

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