Final answer:
In anticipation of a rise in demand, a producer would likely increase production and the demand curve would shift to the right, leading to a higher equilibrium price. This is depicted as option B, adding line D3 to the right of D2. The exact effect on equilibrium price and quantity depends on the relative changes in both supply and demand curves.
Step-by-step explanation:
A producer anticipating a rise in demand would likely take actions to increase production capacity, anticipate higher inventory levels, or improve distribution mechanisms to meet the expected surge in consumer interest. As a consequence of a rise in demand, the demand curve would shift to the right. In graphical terms, the new demand line would be positioned to the right of the existing demand curve, meaning option B is correct: Add line D3 to the right of D2, showing an increase in demand and equilibrium price. As the demand increases, more consumers are willing to purchase the product at higher prices, leading to an upward pressure on the equilibrium price.
When considering supply and demand, the intersection point of the supply and demand curves (equilibrium) reflects where the quantity of goods consumers want to buy is equal to the quantity producers want to sell. When demand increases, and the supply remains constant, the equilibrium price will typically rise to reach a new equilibrium point where the market clears.
Moreover, should the producer also increase supply to cope with this rise in demand, the supply curve would shift to the right as well. The effect on equilibrium price would then depend on the relative shifts in supply and demand, as illustrated in Figure 2.6 of the reference material. However, it's important to note that merely increasing supply does not always result in a decreased price, it depends heavily on the elasticities and magnitudes of the respective shifts.