Supply Shift in Rice Market Steps:

• Bad weather reduces rice production, decreasing supply.
• Supply curve shifts leftward.
• At original price, quantity supplied falls below demand, creating a shortage.
• Market adjusts: price rises to restore equilibrium, reducing shortage quantity. Why C is correct:
• Decreased supply causes excess demand (shortage) at initial price, and law of supply/demand dictates price rises to balance market. Why the others are wrong:
• A: Shortage occurs, but price rises, not falls.
• B: Supply decrease creates shortage, not surplus; price rises, not falls.
• D: Supply decrease creates shortage, not surplus.

Final answer: C