Consider the Bond Market Illustrated in the Figure Below

Consider the bond market illustrated in the figure below. If the current market price is higher than P₁, which of the following statements is true? ​

A) There is a surplus of bonds in the market, and the market price will increase.
B) There is a surplus of bonds in the market, and the market price will fall toward P₁.
C) There is a shortage of bonds in the market, and the market price will fall toward P₁.
D) There is a shortage of bonds in the market, and the price will increase.