Question

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exhibit 4-2 supply and demand curves
beginning from an equilibrium at point $e_1$ in exhibit 4-2, an increase in demand for good x, other things being equal, would move the equilibrium point to:
select one:
$\boldsymbol {a.}$ $e_1$, no change.
$\boldsymbol {b.}$ $e_2$
$\boldsymbol {c.}$ $e_3$
$\boldsymbol {d.}$ $e_4$

Explanation:

An increase in demand, with supply unchanged, shifts the demand curve rightward. Starting at equilibrium $E_1$ (intersection of $D_1$ and $S_1$), a rightward demand shift to $D_2$ creates a new equilibrium at the intersection of $D_2$ and $S_1$, which is point $E_4$.

Answer:

d. $E_4$