The correct answer is Option (2) → (D), (B), (C), (A)
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(D) The demand for ice cream increases. A severe heatwave is a non-price factor (change in taste/preference due to weather) that increases the desire for a cooling product like ice cream at any given price. This is the initial event in the market.
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(B) Supply will remain the same. A sudden heatwave affects consumers' desire (demand), but it does not immediately affect the producer's ability or willingness to supply the product (the supply curve). Therefore, the supply curve does not shift in the immediate short run.
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(C) Competition among the buyers of ice cream increases. With a higher demand (D) and a fixed supply (S), there is now a shortage (or excess demand) in the market at the original price. This shortage forces buyers to compete with each other to obtain the limited available ice cream.
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(A) Rise in the price of ice cream. The increased competition among buyers (the shortage) puts upward pressure on the price. Sellers will respond to the shortage by raising the price until the market reaches a new, higher equilibrium price.
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