-If the Market Price Falls from P₀ to P₁ in the Above

Multiple Choice

-If the market price falls from P₀ to P₁ in the above figure, then

A) a new equilibrium quantity is established.
B) there is a shortage equal to the distance EF.
C) there will be a further tendency for price to fall.
D) there is a surplus of goods on the market equal to the distance Q₁, Q₂.