Draw and label a diagram to show the effects on the equilibrium market position to show the effects of a hot sunny day on the market for ice creams.

Demand Shift to the Right:As we can see on the diagram this increase in demand for ice-cream will cause the demand to make a full shift to the right (reference positions X-Y). This will mean that the equilibrium price and quantity of the good has been affected. The equilibrium quantity and price have both risen, meaning that more of the good is being sold and for a higher purchase price. The new equilibrium price is marked at P2 and the new equilibrium demand is marked at Q2.

CF

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