Question

Suppose that unusually cold weather causes the demand curve for ice cream to shift to the left. Why will the price of ice cream fall to a new market-clearing level? The cold weather wil O A. shift the supply curve to the left, initially creating a surplus until the price falls to where quantity supplied again equals quantity ○ B. cause the supply curve to become fixed, initially creating a surplus until the price falls to where quantity supplied again equals O C. shift the demand curve to the left, initially creating a surplus until the price falls to where quantity supplied again equals quantity 0 D. shift the demand curve to the left, initially creating a surplus until the price rises to where quantity supplied again equals quantity 0 E. shift the demand curve to the left, initially creating a shortage until the price falls to where quantity supplied again equals quantity demanded quantity demanded demanded demanded demanded

Answer 1

The answer is option c- The cold weather will shift the demand curve to the left, initially creating a surplus until the price falls to where Quantity is equal to Quantity demanded