Refer to the above graph showing the market for a product. Which of the following would best explain why the shift in demand from D1 to D2 would cause price to rise from P1 to P2? Select one: A. Because after the shift in the demand, there would be a surplus at price P1 B. Because after the shift in the demand, there would be a shortage at price P2 C. Because after the shift in the demand, there would be a shortage at price P1 D. Because after the shift in the demand, there would be a surplus at price P2 (I thought it would be P2, a surplus, this is incorrect though, please help with explanation)
Refer to the above graph showing the market for a product. Which of the following would best explain why the shift in demand from D1 to D2 would cause price to rise from P1 to P2? Select one: A. Because after the shift in the demand, there would be a surplus at price P1 B. Because after the shift in the demand, there would be a shortage at price P2 C. Because after the shift in the demand, there would be a shortage at price P1 D. Because after the shift in the demand, there would be a surplus at price P2 (I thought it would be P2, a surplus, this is incorrect though, please help with explanation)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Refer to the above graph showing the market for a product. Which of the following would best explain why the shift in demand from D1 to D2 would cause price to rise from P1 to P2? Select one:
A. Because after the shift in the demand, there would be a surplus at price P1
B. Because after the shift in the demand, there would be a shortage at price P2
C. Because after the shift in the demand, there would be a shortage at price P1
D. Because after the shift in the demand, there would be a surplus at price P2
(I thought it would be P2, a surplus, this is incorrect though, please help with explanation)
Transcribed Image Text:Price
P₂
P₁
0
Q₁ Q₂
Quantity
Supply
D₁
D2
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