1.The market-clearing price

a. refers to a demand curve.

b. refers to a surplus.

c. is the price at which quantity demanded equals quantity supplied.

d. refers to a shortage.

2.The price of automobiles is rising because more people want to purchase cars. As a result, the

a. supply of cars shifts to the right.

b. supply of cars shifts to the left.

c. quantity supplied of cars increases.

d. quantity supplied of cars decreases