Price rises to equilibrium due to excess demand from consumer willingness

Steps:

• Suppliers set price at P_s, below equilibrium P_e, creating a shortage.
• At P_s, quantity demanded exceeds quantity supplied.
• Shortage pressures price upward along the demand and supply curves.
• Price reaches P_e where quantity demanded equals quantity supplied.

Why C is correct:

• The demand curve reflects consumers' willingness to pay, so at low P_s, some bid higher, driving price to P_e per the law of supply and demand.

Why the others are wrong:

• A: Price rise is movement along existing demand curve, not a shift from increased demand.
• B: Higher price incentivizes more supply, not cessation.
• D: Rising costs shift supply curve leftward, but here price adjusts along unchanged curves.

Final answer: C