Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions :
Figure 3-1
-Let P* and Q* represent market clearing price and quantity, respectively.Given the supply and demand curves drawn in Figure 3-1, the appearance of foreign suppliers willing to sell any quantity at a price slightly higher than equilibrium can be expected to cause:

A) P* and Q* to climb.
B) P* and Q* to fall.
C) P* to climb while Q* falls.
D) Q* to fall while P* holds steady.
E) none of the above.