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On an S&D graph of a particular stock, how would the revelation that one of its...

On an S&D graph of a particular stock, how would the revelation that one of its products has unexpectedly been contracted for an unprecedented amount of purchase by the Federal government be seen?

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Answer #1

The mentioned news, is going to increase the demand of the stock and demand curve will shift to the right. It will increase the price and quantity at the new equilibrium. It is shown as follows:

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