Refer to the Information Provided in Figure 5

question 65

Multiple Choice

Refer to the information provided in Figure 5.6 below to answer the question that follows. Figure 5.6
-Refer to Figure 5.6. The market is initially in equilibrium at the intersection of the demand curve and supply curve S₂. If supply shifts from S₂ to S₁, which of the following statements is true?

• A) Price will still serve as a rationing device causing quantity supplied to exceed 12 pizzas.
• B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is less than the original equilibrium quantity.
• C) Price will still serve as a rationing device causing quantity demanded to rise from 10 to 12 pizzas.
• D) The market cannot move to a new equilibrium unless demand shifts at the same time that supply shifts.

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Definitions:

Generativity

The concern in establishing and guiding the next generation, often expressed through parenting, mentoring, or contributing to society in a meaningful way.

Creative Thinkers

Individuals who have the ability to look at problems or situations from a fresh perspective, leading to unorthodox solutions or innovations.

Fewer Mistakes

A term that refers to making less errors or inaccuracies in a process or activity.

Inspired

A state of being mentally stimulated to do or feel something, especially to do something creative.