Macroeconomics 11th Edition by Stephen Slavin

Exercise 54

Before you get started, you'll find it's much easier to answer many of these questions by first sketching a graph of a supply and demand curve. In fact, that graph will help you answer the first four questions.
Circle the letter that corresponds to the best answer.
If the price system is allowed to function without interference and a shortage occurs, quantity demanded will _____ and quantity supplied will _____ as the price rises to its equilibrium level.
a) rise, rise
b) fall, fall
c) rise, fall
d) fall, rise