Refer to the information provided in Figure 4.2 below to answer ...

[APUS57]

Refer to the information provided in Figure 4.2 below to answer the question(s) that follow.













Refer to Figure 4.2. The market is initially in equilibrium at the intersection of 
S
₂ and 
D
_, and supply shifts from 
S
_{2 to} 
S
_1. Which of the following statements is 
true?

◦ Price will still serve as a rationing device causing quantity demanded to rise from 8 to 11 soft pretzels.
◦ 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.
◦ Price will still serve as a rationing device causing quantity supplied to fall from 8 to 4 soft pretzels.
◦ The market cannot move to a new equilibrium until there is also a change in supply.

[cassie_ragen]

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[APUS57]

Thank you!

[cassie_ragen]

Always glad to help...