Refer to the information provided in Figure 5.6 below to answer the question that follows. Figure 5.6 -Refer to Figure 5.6. The market is initially in equilibrium at the intersection of the demand curve and supply curve S₂. If supply shifts from S₂ to S₁, which of the following statements is true? A) Price will still serve as a rationing device causing quantity supplied to exceed 12 pizzas. B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is less than the original equilibrium quantity. C) Price will still serve as a rationing device causing quantity demanded to rise from 10 to 12 pizzas. D) The market cannot move to a new equilibrium unless demand shifts at the same time that supply shifts.

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The Answer of Refer to the information provided in Figure 5.6 below to answer the question that follows. Figure 5.6 -Refer to Figure 5.6. The market is initially in equilibrium at the intersection of the demand curve and supply curve S₂. If supply shifts from S₂ to S₁, which of the following statements is true? A) Price will still serve as a rationing device causing quantity supplied to exceed 12 pizzas. B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is less than the original equilibrium quantity. C) Price will still serve as a rationing device causing quantity demanded to rise from 10 to 12 pizzas. D) The market cannot move to a new equilibrium unless demand shifts at the same time that supply shifts.

Refer to the Information Provided in Figure 5