Arrange the following steps in the correct order to analyze market equilibrium when a new product is introduced: A) Identify shifts in demand and supply curves, B) Determine the new equilibrium price and quantity, C) Assess consumer preferences and potential market size, D) Analyze the impact of external factors on supply and demand.

To analyze market equilibrium when a new product appears, start by assessing consumer preferences and the possible size of the market (C). Next, identify how the demand and supply curves will shift because of the new product (A). Then consider external factors—such as regulations or input costs—that could alter supply and demand further (D). Finally, calculate the new equilibrium price and quantity where the shifted curves intersect (B). For example, if a smartphone enters the market, we first gauge how many people might buy it, then see how demand rises, check how production costs change, and then find the new price and sales level.