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Refer to the Above Graph Showing the Market for a Product

Question 81

Multiple Choice

Refer to the above graph showing the market for a product. Which of the following would best explain why the shift in demand from D<sub>1</sub> to D<sub>2</sub> would cause price to rise from P<sub>1</sub> to P<sub>2</sub>? A) Because after the shift in the demand, there would be a surplus at price P<sub>2</sub> B) Because after the shift in the demand, there would be a shortage at price P<sub>2</sub> C) Because after the shift in the demand, there would be a shortage at price P<sub>1</sub> D) Because after the shift in the demand, there would be a surplus at price P<sub>1</sub> Refer to the above graph showing the market for a product. Which of the following would best explain why the shift in demand from D1 to D2 would cause price to rise from P1 to P2?


A) Because after the shift in the demand, there would be a surplus at price P2
B) Because after the shift in the demand, there would be a shortage at price P2
C) Because after the shift in the demand, there would be a shortage at price P1
D) Because after the shift in the demand, there would be a surplus at price P1

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