Exhibit 4-3 Supply and demand curves
Beginning from an equilibrium at point E2 in Exhibit 4-3, an increase in demand for good X, other things being equal, would move the equilibrium point to:
A. E1.
B. E2.
C. E3.
D. E4.
Answer: C
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A decrease in supply _____ price and _____ the quantity sold.
Fill in the blank(s) with the appropriate word(s).