Using the market for white cotton t-shirts, suppose that the market is in equilibrium. Then, there is a decrease in the price of cotton.

Would there be a temporary shortage or surplus in the market? Will there be a change in quantity supplied or quantity demanded after the price rises to get to your new equilibrium

Shortage = A Surplus = B Quantity Supplied = C Quantity Demanded = D

Instructions: State whether you think it will be A, B, C, or D. The answer will be combination of two, for example if you think there is a shortage and a change in quantity supplied, you would have AC. In your answers only include the letter the two capital letters. Make sure choose between AB first, then between CD.

Answer: