As defined in the model of supply and demand, the corn market temporarily experiences a shortage. Then the market begins adjusting itself, and moves towards the equilibrium price for corn. As the corn price increases, we predict that:
A) an increase in the quantity supplied of corn occurs as the market adjusts to its equilibrium price.
B) a decrease in the quantity demanded of corn occurs as the market adjusts to its equilibrium price.
C) a shift to the left of the demand for corn is necessary, if the market is to recover from the shortage and restore its equilibrium price.
D) a shift to the right of the supply of corn is necessary, if the market is to recover from the shortage and restore its equilibrium price.
E) both answers ""a"" and ""b"".

Question

Quizplus · Accepted Answer

When an auction occurs to clear a shortage from the market, the rising price simultaneeously causes buyers to purchase less units and sellers to sell more units.

As Defined in the Model of Supply and Demand, the Corn