FIGURE 3- 6 -Refer to Figure 3- 6. If the Initial Demand and Initial

question 83

Multiple Choice

FIGURE 3- 6
-Refer to Figure 3- 6. If the initial demand and supply curves are D1 and S1, and demand shifts to
D2, then

• A) a shortage will occur at any price above P3.
• B) a permanent shortage of X will result.
• C) a surplus of Q1Q3 will occur.
• D) if price remained at P2, a shortage of Q1Q3 would exist.
• E) all of the above