Questions: Delta in Q d Increase Delta in S Right shift Delta Q s Increase

Transcript text: \begin{tabular}{|l|l|} \hline$\Delta$ in $Q d$ & Increase \\ \hline$\Delta$ in $S$ & Right shift \\ \hline$\Delta Q s$ & Increase \\ \hline \end{tabular}

Solution

Solution Steps

Step 1: Analyze the graph

The graph shows a rightward shift of the demand curve from D₁ to D₂. The supply curve (S) remains constant. The initial equilibrium is where D₁ intersects S. The new equilibrium is where D₂ intersects S.

Step 2: Determine the changes

The rightward shift of the demand curve leads to an increase in both the equilibrium quantity and the equilibrium price.

Step 3: Create the table

Since the supply curve doesn't shift, the change in _S_ is "No change". The demand curve shifts right, so the change in _Qd_ is "Increase". The quantity supplied increases to match the new, higher quantity demanded at the new equilibrium, so the change in _Qs_ is "Increase".