Refer to the diagram, in which S 1 and D 1 represent the original supply and demand curves and S 2 and D 2 the new curves. In this market:





A. the equilibrium position has shifted from M to K.

B. an increase in demand has been more than offset by an increase in supply.

C. the new equilibrium price and quantity are both greater than originally.

D. point M shows the new equilibrium position.


B. an increase in demand has been more than offset by an increase in supply.

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