Supply Shift Left and Demand Shift Right

Steps:

• Travel restrictions to neighboring countries increase demand for local Singapore golf courses, shifting demand curve right.
• Closure of local courses decreases supply, shifting supply curve left.
• Rightward demand shift raises equilibrium price and quantity; leftward supply shift also raises price but lowers quantity.
• Combined shifts result in higher equilibrium price and higher quantity of memberships.

Why B is correct:

• Point B shows new equilibrium with increased price and quantity, matching supply-demand model where simultaneous right demand and left supply shifts unambiguously increase both.

Why the others are wrong:

• A: Shows only demand increase (higher quantity, ambiguous price), ignoring supply decrease.
• C: Shows only supply decrease (higher price, lower quantity), ignoring demand increase.
• D: Shows no change or opposite shifts, not reflecting the described events.

Final answer: B