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Refer to the Information Provided in Figure 5

Question 123

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Refer to the information provided in Figure 5.6 below to answer the question that follows. Refer to the information provided in Figure 5.6 below to answer the question that follows.   Figure 5.6 -Refer to Figure 5.6. The market is initially in equilibrium at Point A and supply shifts from S<sub>1</sub> to S<sub>2</sub>. Which of the following statements is true? A)  Price will still serve as a rationing device causing quantity supplied to exceed 12 thousand pizzas. B)  There is no need for price to serve as a rationing device in this case because the new equilibrium quantity exceeds the original equilibrium quantity. C)  Price will still serve as a rationing device causing quantity demanded to fall from 12 to 10 thousand pizzas. D)  The market cannot move to a new equilibrium until there is also a change in demand. Figure 5.6
-Refer to Figure 5.6. The market is initially in equilibrium at Point A and supply shifts from S1 to S2. Which of the following statements is true?


A) Price will still serve as a rationing device causing quantity supplied to exceed 12 thousand pizzas.
B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity exceeds the original equilibrium quantity.
C) Price will still serve as a rationing device causing quantity demanded to fall from 12 to 10 thousand pizzas.
D) The market cannot move to a new equilibrium until there is also a change in demand.

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