At Price P ₁ in Figure 4-21, What

Multiple Choice

At price P ₁ in Figure 4-21, what will tend to happen?

A) There will be a shortage, and the price will fall.
B) There will be a shortage, and the price will rise.
C) There will be a surplus, and the price will rise.
D) There will be a surplus, and the price will fall.
E) Equilibrium will occur in the market.