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A-Level Economics · Shift in demand diagram question

Incomes rise and this is a normal good, shifting D1 to D2. Which point is the NEW equilibrium?

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The diagram

The answer

Point F. S crosses D2 at point F: £6, quantity 6 — both price AND quantity rise. After the shift the market moves along S to where S crosses the NEW demand curve — point F: £6, quantity 6.

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This is one of 3 questions on the shift in demand diagram — every corner lettered, every wrong answer diagnosed.

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