Shifts in Supply and Demand to Reach Equilibrium X Steps: - Examine the graph: Initial equilibrium at intersection of supply (S) and demand (D); point X shows higher price and higher quantity. - Event 1 must shift demand right (increase), raising price and quantity temporarily. - Event 2 must then shift supply right (increase), further raising quantity while moderating price rise. - Match sequences: Only D fits both shifts in order. Why D is correct: - D describes an initial demand increase (e.g., via advertising or income rise) followed by supply increase (e.g., via new producers or subsidy), per the law of supply and demand where rightward shifts move equilibrium to higher quantity. Why the others are wrong: - A: Decline in cocoa likely decreases supply (left shift); subsidy removal also decreases supply—both left shifts lower quantity, not matching X. - B: Income decrease shifts demand left (lower quantity); fewer producers shift supply left—both reduce quantity and price. - C: Advertising shifts demand right (higher quantity); increased taxation shifts supply left (higher price, lower quantity)—net effect lowers quantity. Not enough …