he cobweb model mimmics market oscillations between shortage and surplus by mathematically characterizing supply and demand in the following way Question 31 options: Demand is shifting from one period (t) to the next period (t+1), and supply is shifting based on (t-1) Supply is steeper than Demand and this results in an outward spiraling of the cobweb diagram Supply is a function of last year's price while Demand is a function of this year's quantity available for sale. If P> Q then a shortage causes Supply to increase, and if P