Question

"A" represents the new quantity demanded, while "B" represents the new quantity supplied.

What is the result of these changes?



Based on this graph, what will prices most likely do?

Answer 1

I can’t see the graph you’re looking at — please upload it or describe the shifts/positions — but here’s the rule you should use to answer the question:

- Compare A (quantity demanded at the current price) to B (quantity supplied at the current price).
- If B > A (supply exceeds demand) there is a surplus → sellers will cut prices (price falls).
- If A > B (demand exceeds supply) there is a shortage → buyers bid prices up (price rises).
- If A = B the market is at equilibrium → price stays about the same.

So, based on the graph: if A is smaller than B, prices will most likely fall; if A is larger than B, prices will most likely rise. Upload the graph or give the numeric/visual relation and I’ll pick the correct outcome.