Can you please explain the correct answer. Typed answer pl Suppose that the short run supply of ventilators in a city is perfectly inelastic:Q$ = 500 and demand is QD = 700 - When demand increases toQD = 1400%3DP100allowing price to increase will ensure that:%3D(select all that apply)more units are supplied in the short run (the allocative function of price)Correct AnswerO the good goes to consumers who value it the most (the rationing function of price)more firms enter in the long run (the rationing function of price)Correct AnswerO more firms enter in the long run (the allocative function of price)Usome firms exit in the long run (the allocative function of price)

Here, it is given that the supply of ventilators is perfectly inelastic in the short-run with given…

Suppose that the short run supply of ventilators in a city is perfectly inelastic: Q$ = 500 and demand is QD = 700 - . When demand increases to QD 1400 T00 allowing price to increase will ensure that: (select all that apply) more units are supplied in the short run (the allocative function of price) er O the good goes to consumers who value it the most (the rationing function of price) more firms enter in the long run (the rationing function of p er Umore firms enter in the long run (the allocative function of price) some firms exit in the long run (the allocative function of price)