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?

As illustration shows it will shift to the point E if the demand increases suddenly because of a non-price determinant of demand. In microeconomics, the law of demand states that, as the price of a good increases, quantity demanded decreases; conversely, as the price of a good decreases, quantity demanded increases.

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