Suppose That the Quantity of Cars Demanded Exceeds the Quantity

question 110

Multiple Choice

Suppose that the quantity of cars demanded exceeds the quantity of cars supplied. We would expect that

• A) the price of cars will increase.
• B) the price of cars will decrease.
• C) the supply will increase (supply will shift to the right) to meet the demand.
• D) the demand will decrease (demand will shift to the left) to meet the supply.