Use the Following to Answer Question

question 156

Multiple Choice

Use the following to answer question
Figure: Predicting Market Shifts
-(Figure: Predicting Market Shifts) Why is there a tendency for this market to move from P₁ to P₂?

• A) The presence of excess inventories forces firms to cut prices.
• B) The presence of an economic shortage induces firms to offer lower prices.
• C) The government wants to rationalize the market.
• D) Nature abhors a vacuum.