2. Think about the changes in supply and demand conditions in the market for bananas, a globally

traded fruit.

The supply and demand diagram below indicates a series of demand and supply curves with the

initial equilibrium price and output at P1and Q1, respectively (shown by point X).

In each of the following examples, always starting at point X, what is the most likely equilibrium

point (A, B, C, D, E, F, G or H) in the event of the change mentioned in the table.

Supply 3 Market price of bananas Supply 1 D Supply 2 B A X P1 H Demand 2 Demand 1 Demand 3 Q1 Quantity Traded of Bananas