Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market:

A. supply has decreased and equilibrium price has increased.
B. demand has decreased and equilibrium price has decreased.
C. demand has increased and equilibrium price has increased.
D.
demand has increased and equilibrium price has decreased.

ANSWER:

D.
demand has increased and equilibrium price has decreased.