Refer to the Information Provided in Figure 4

question 8

Multiple Choice

Refer to the information provided in Figure 4.2 below to answer the question(s) that follow. Figure 4.2
-Refer to Figure 4.2. The market is initially in equilibrium at the intersection of S₂ and D_, and supply shifts from S_{2 to} S_1. Which of the following statements is true?

• A) Price will still serve as a rationing device causing quantity demanded to rise from 8 to 11 soft pretzels.
• B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity is lower than the original equilibrium quantity.
• C) Price will still serve as a rationing device causing quantity supplied to fall from 8 to 4 soft pretzels.
• D) The market cannot move to a new equilibrium until there is also a change in supply.

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Definitions:

Flowering Plant

Plants belonging to the group Angiosperms, characterized by bearing flowers and producing seeds enclosed within a fruit.

Lignin

A complicated organic molecule found in the cell walls of numerous plants, contributing to their stiff and woody nature.

Cellulose

A complex carbohydrate that forms the primary structural component of plant cell walls and is indigestible to humans.

Xylem

The plant's vascular system responsible for transporting water and dissolved nutrients from the roots throughout the rest of the plant.