Question

market-clearing level? O A. shift the demand curve to the left, initially creating a shortage until the price falls to where quantity supplied again equals quantity demanded B. shift the demand curve to the left, initially creating a surplus until the price rises to where quantity supplied again equals quantity demanded O C. cause the supply curve to become fixed, initially creating a surplus until the price falls to where quantity supplied again equals quantity D. ○ E. shift the demand curve to the left, initially creating a surplus until the price falls to where quantity supplied again equals quantity demanded. shift the supply curve to the left, initially creating a surplus until the price falls to where quantity supplied again equals quantity demanded. All parts showing Clear All

Answer 1

Correct Answer :

D

Due to cold weather, demand curve will shift to the right. Supply curve will remain as it was. Now, price will decrease to the level, where demand curve will intersect the supply curve.