y-$2 Supply-S1 Sup Demand A B P2=$400- E P1=$330 Ci G F 21=200 22-190 Million Bushels Dr. Ibrahim Abou-Saad Figure 1 shows the short-run effect of a drought in a given time period that affected harmfully the production of wheat in North Dakota. Assuming other things being equal, the wheat supply curve has shifted leftward from $1 to $2 causing equilibrium price to fall from P1=$330 per bushel to P2 = $400 per bushel, and equilibrium quantity to fall from Q1= 200 million bushels to Q2=190 million bushels. Referring to Figure 1, which of the following is true? Figure 1 shows the cases of an "increase in quantity demanded" and a "decrease in quantity supplied." Figure 1 shows the cases of a "decrease in quantity supplied" and a "decrease in demand." Figure 1 shows the cases of a "decrease in quantity supplied" and a "decrease in quantity demanded." ONone of the above