Figure: Demand-Driven Price Change P Refer to the figure. When the demand curve shifts from Do to 1, the equilibrium price rises to: $8 and the equilibrium quantity rises to 140. $9 and the equilibrium quantity rises to 120. $8 and the equilibrium quantity rises to 160. $9 and the equilibrium quantity rises to 160. Assume there is a sudden increase in demand, if the market if a perfectly competative free market we expect the price to adjust because the market is experiencing O a shortage. O a surplus. O nothing. O a new, lower equilibrium. Figure: Price and Quantity 4 Price 100 80 60 40 20 Quantity If the figure depicts a market for an inferior good, which of the following statements describes what could have happened? The price of a substitute good increased, causing an increase in quantity demanded and an increase in quantity supplied. Consumers expect lower future pr . causing an increase in demand and an increase in supply. O Consumer incom ase in demand and an increase in quantity supplied. O Consumer income increase using an increase in demand and an increase in supply. (Figure: Chocolate) If the price n the diagram is $4, what will happen? per pound $16 14 Supply 12 20 40 60 80 100 120 140 160 (thousands) The price will increase because of a surplus. The price will incre ecause of a shortage. 0000 The price will dec se of a shortage. The price will de of a surplus