Simultaneous rightward shifts in supply and demand

Steps:

• Improved technology reduces production costs, shifting supply curve rightward.
• Health benefits from book increase consumer preference, shifting demand curve rightward.
• Both shifts raise equilibrium quantity; price rises if demand shift dominates.
• New equilibrium is at intersection of shifted curves, point C in diagram.

Why C is correct:

• C reflects higher quantity and price from combined outward shifts, per law of supply and demand.

Why the others are wrong:

• A: Shows only supply increase (lower price, higher quantity).
• B: Indicates only demand increase (higher price, ambiguous quantity).
• D: Represents no change or inward shift (unchanged or lower equilibrium).

Final answer: C