Use the Following Diagram to Answer the Following Questions

question 48

Multiple Choice

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 - Q₃ to develop.
• C) excess demand of Q₁ - Q₂ to develop.
• D) excess demand of Q₁ - Q₃ to develop.

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