(Figure: Predicting Market Shifts) Why Is There a Tendency for This

Multiple Choice

(Figure: Predicting Market Shifts) Why is there a tendency for this market to adjust from a price of 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 regulate the market.
D) Insufficient production causes some consumers to offer to pay more for the product.