The graph above shows supply and demand for electronic readers. The holidays are coming up. What would a producer do in anticipation of a rise in demand, andhow would that effect the equilibrium price? Add line D3 to the left of D2, showing an increase in demand and equilibrium price.
Add line D3 to the right of D2, showing an increase in demand and equilibrium price.
Add line S2 to the right of S, showing an increase in supply and a decrease in equilibrium price.
Add line S2 to the left of S, showing a decrease in supply and an increase in equilibrium price.