For a product, the quantity demanded, QD, is defined by QD = 400 – 20P, where P = price in $. The quantity supplied, QS, is given by QS = 100 + 40P. Which change will take place if the price increases from $5 to $6?
- AThe market will move from equilibrium to shortage.
- BThe market will move from equilibrium to surplus.
- CThe market will move from shortage to surplus.
- DThe market will move from surplus to shortage.