Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 7
9708The interaction of demand and supply
A free market is in disequilibrium with a shortage of a product. As the market moves towards equilibrium, what will happen to the price, the quantity demanded and the quantity supplied?
- Aprice decrease, quantity demanded decrease, quantity supplied increase
- Bprice decrease, quantity demanded increase, quantity supplied decrease
- Cprice increase, quantity demanded decrease, quantity supplied increase
- Dprice increase, quantity demanded increase, quantity supplied decrease
As printed in the paper
Show the answer
Correct answer: C. price increase, quantity demanded decrease, quantity supplied increase
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