In the Figure Given Below D₁ and S₁ Are the Initial

question 82

Multiple Choice

In the figure given below D₁ and S₁ are the initial demand and supply curves for a commodity in the market. Figure 3.3

-Refer to Figure 3.3.If the change in the demand in this market occurred before the change in supply,then starting from the initial equilibrium:

• A)firms would experience a fall in profits and then a gradual increase in profits after the change in supply occurred.
• B)there would be an immediate shortage,lasting until the price reaches P₂.
• C)price would change from P₁ to P₂ after the change in demand and would change again from P₃ to P₄ after the change in supply.
• D)there would be a surplus until the price reaches P₄.
• E)there would be a surplus even after price reaches P₄.

---

Definitions:

Positive Exponents

Refers to exponents that are greater than zero, used to denote the number of times a base is multiplied by itself.

Expression

An expression in mathematics is a combination of symbols that can represent a number, variable, operation, or a combination thereof, without an equality sign.

X

Often used to represent an unknown variable in algebraic equations or the horizontal axis in Cartesian coordinate systems.

Y

Often used to denote the dependent variable or the output value in a function, commonly represented on the vertical axis in a Cartesian coordinate system.