Exhibit 4-2 -Refer to Exhibit 4-2. If the Supply Curve Shifts to Curve

Multiple Choice

Exhibit 4-2
-Refer to Exhibit 4-2. If the supply curve shifts to the right, then which of the following is true?

A) D₁ results in the most decrease in the equilibrium price.
B) D₁ results in the most increase in the equilibrium price.
C) D₂ results in the most decrease in the equilibrium price.
D) D₂ results in the most increase in the equilibrium price.
E) The change in the equilibrium price is the same for D₁ and D_2.