Refer to the information provided in Figure 4.2 below to answer the question(s) that follow. Figure 4.2 -Refer to Figure 4.2. The market is initially in equilibrium at Point A and supply shifts from S₁ to S₂. Which of the following statements is true? A) Price will still serve as a rationing device causing quantity supplied to rise from 8 to 11 soft pretzels. B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is higher than the original equilibrium quantity. C) Price will still serve as a rationing device causing quantity demanded to fall from 11 to 8 soft pretzels. D) The market cannot move to a new equilibrium until there is also a change in supply.

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The Answer of Refer to the information provided in Figure 4.2 below to answer the question(s) that follow. Figure 4.2 -Refer to Figure 4.2. The market is initially in equilibrium at Point A and supply shifts from S₁ to S₂. Which of the following statements is true? A) Price will still serve as a rationing device causing quantity supplied to rise from 8 to 11 soft pretzels. B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is higher than the original equilibrium quantity. C) Price will still serve as a rationing device causing quantity demanded to fall from 11 to 8 soft pretzels. D) The market cannot move to a new equilibrium until there is also a change in supply.

Refer to the Information Provided in Figure 4