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Use the Following Diagram to Answer the Following Questions

Question 93

Multiple Choice

Use the following diagram to answer the following questions.
Use the following diagram to answer the following questions.    -Refer to Tea. Suppose the supply for tea decreases from S₁ to S₂. If price did not change, we would expect: A)  excess supply of Q₁ - Q₂ to develop. B)  excess supply of Q₁ - Q<sub>3</sub> to develop. C)  excess demand of Q₁ - Q₂ to develop. D)  excess demand of Q₁ - Q<sub>3</sub> to develop.
-Refer to Tea. Suppose the supply for tea decreases from S₁ to S₂. If price did not change, we would expect:


A) excess supply of Q₁ - Q₂ to develop.
B) excess supply of Q₁ - Q3 to develop.
C) excess demand of Q₁ - Q₂ to develop.
D) excess demand of Q₁ - Q3 to develop.

Correct Answer:

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