Refer to the Information Provided in Figure 5

Multiple Choice

Refer to the information provided in Figure 5.6 below to answer the question that follows. Figure 5.6
-Refer to Figure 5.6. The market is initially in equilibrium at Point A and supply shifts from S₁ to S₂. Which of the following statements is true?

A) Price will still serve as a rationing device causing quantity supplied to exceed 12 thousand pizzas.
B) There is no need for price to serve as a rationing device in this case because the new equilibrium quantity exceeds the original equilibrium quantity.
C) Price will still serve as a rationing device causing quantity demanded to fall from 12 to 10 thousand pizzas.
D) The market cannot move to a new equilibrium until there is also a change in demand.