Suppose that the demand curveis D. To increase the equilibrium quantity by 1, the demand needs to increase by
a. 3
b. 1
c. 2
d. 1/2
Ans: c. 2
The diagram above depicts that to increase equilibrium quantity from Q2 to Q3, the demand curve needs to shift from D2 to D3, thus it should shift by 2 units.
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