A Wall Street Journal Headline Reads: "Cigar Shortage Draws New

A Wall Street Journal headline reads: "Cigar Shortage Draws New Brands into Market." The shortage resulted from a renewed interest in smoking cigars. What best describes facts behind the headline?

A) Supply has shifted to the right. Price has fallen somewhat, but not enough to equilibrate supply and demand.
B) Demand has shifted to the right. Price has risen somewhat, increasing quantity supplied, but not enough to equal quantity demanded.
C) Demand has shifted to the right and price has risen to equilibrate supply and demand.
D) Supply has shifted to the left. Price has risen somewhat, but not enough to equilibrate supply and demand.

Correct Answer:

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