n the diagram, suppliers have set the price of a product at ${P_S}$. Economic theory predicts that the equilibrium price of the product will rise to ${P_E}$.
What is the reason for this movement in price?
1 )
Demand for the product will increase.
2 )
No more of the product can be supplied.
Some consumers are willing to pay higher prices.
4 )
Suppliers are facing rising costs.
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