Question

The supply and demand curves reflect the availability and cost of a new gaming system. If the gaming system market is currently at Demand and Supply 1, which change to the graph would have to occur to decrease equilibrium price while raising equilibrium quantity?

A) Add Demand 1 to left of Demand.
B) Add Demand 1 to right of Demand.
C) Add Supply 2 to left of Supply 1.
D) Add Supply 2 to right of Supply 1.

Answer 1

D) add supply 2 to the right of supply 1

Step-by-step explanation:

Adding a Supply 2 to the right of Supply 1 decreases the equilibrium price while raising equilibrium quantity.

Answer 2

The answer is "Option B".

Step-by-step explanation:

In the given scenario, Whether the demand shifts to the right one, the quantity demanded will increase at every price. For instance, when drinking coke gets fashionable, consumption will increase at all costs. It is because we would like to expand quantities while cutting costs because then you add a line towards the left of the original to cut prices but increase numbers.