An economy is experiencing a shortage of housing. Demand for housing keeps increasing as real incomes rise and more construction firms enter the market to build additional houses. Which diagram shows this situation?
- A[IMAGE:9708_s20_qp_12_p5_diagram_4]
- B[IMAGE:9708_s20_qp_12_p5_diagram_3]
- C[IMAGE:9708_s20_qp_12_p5_diagram_5]
- DDiagram D: supply shifts left S1 to S2 with demand shifts right