Suppose the Current Price of a Pound of Steak Is

Multiple Choice

Suppose the current price of a pound of steak is $6 per pound and the equilibrium price is $9 per pound.What takes place?

A) There is a shortage, so the price falls and quantity demanded increases.
B) There is a surplus, so the price falls and quantity demanded increases.
C) There is a shortage, so the price rises and quantity demanded decreases.
D) There is a shortage, so the price rises and quantity demanded increases.
E) There is a shortage, so the price falls and quantity demanded decreases.