Question

Suppose that unusually hot weather causes the demand curve for ice cream to shift to the right. Why will the price of ice cream rise to a new​ market-clearing level? The hot weather will A. cause the supply curve to become​ fixed, initially creating a shortage until the price rises to where quantity supplied again equals quantity demanded. B. shift the demand curve to the right​, initially creating a shortage until the price falls to where quantity supplied again equals quantity demanded. C. shift the demand curve to the right​, initially creating a surplus until the price rises to where quantity supplied again equals quantity demanded. D. shift the supply curve to the right​, initially creating a shortage until the price rises to where quantity supplied again equals quantity demanded. E. shift the demand curve to the right​, initially creating a shortage until the price rises to where quantity supplied again equals quantity demanded.

Answer 1

Answer:

E. shift the demand curve to the right​, initially creating a shortage until the price rises to where quantity supplied again equals quantity demanded.

Explanation:

The demand will shift to the right generating a shortage until the supply raises the price to make the market in equilibrium again.

We should also assume this equilibrium will be at more ice-cream quantity as the supplier will respond for this increase in demand with both, increase in production and increase in price.