Question

the price of mangoes is currently $5.00 per pound. at this price, producers are supplying 4,000 pounds of mangoes. point c on the graph shows the current equilibrium price and quantity. to which point will the equilibrium shift if the demand increases suddenly because of a non - price determinant of demand?

Explanation:

Step1: Analyze Demand Shift

A non - price determinant increasing demand shifts the demand curve right (to demand curve 2).

Step2: Find New Equilibrium

The new equilibrium is where the new demand curve (demand curve 2) intersects the supply curve. This intersection is at point B.

Answer:

B