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Refer to the Graph Shown

Question 84

Multiple Choice

Refer to the graph shown. Refer to the graph shown. If product demand increases from D<sub>1</sub> to D<sub>2</sub>, the equilibrium price of the product will: A) increase from P<sub>1</sub> to P<sub>2</sub> and equilibrium quantity will increase from Q<sub>1</sub> to Q<sub>2</sub>. B) increase from P<sub>1</sub> to P<sub>2</sub> and equilibrium quantity will decrease from Q<sub>2</sub> to Q<sub>1</sub>. C) decrease from P<sub>2</sub> to P<sub>1</sub> and equilibrium quantity will increase from Q<sub>1</sub> to Q<sub>2</sub>. D) decrease from P<sub>2</sub> to P<sub>1</sub> and equilibrium quantity will decrease from Q<sub>2</sub> to Q<sub>1</sub>. If product demand increases from D1 to D2, the equilibrium price of the product will:


A) increase from P1 to P2 and equilibrium quantity will increase from Q1 to Q2.
B) increase from P1 to P2 and equilibrium quantity will decrease from Q2 to Q1.
C) decrease from P2 to P1 and equilibrium quantity will increase from Q1 to Q2.
D) decrease from P2 to P1 and equilibrium quantity will decrease from Q2 to Q1.

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