Question

Complete the following sentence. Upper A decrease in the demand for pasta brings a​ ______ of pasta at the original price and the market price will​ ______ .

A.
shortage​; rise
B.
shortage​; fall
C.
surplus​; fall
D.
surplus​; rise

Answer 1

it can be mentioned that if there is a decrease in the demand for pasta what happens is the demand curve will shift left and the price will decrease and the equilibrium quantity and this is because if there is a decrease in demand at the same supply what happens is that there would be more supply than demand and this is a surplus and in order to sell of the surplus there would be a motivating factor for the the consumers and this would be decrease in price so that all the remaining pasta is also sold off and that is the reason why the surplus is created and with the price is decreased.

Therefore (C) is the answer

Because surplus is created and not shortage and price is decreased but not increased

Therefore (A,B,D) are wrong