Which One of the Following Correctly Describes How Price Adjustment

question 69

Multiple Choice

Which one of the following correctly describes how price adjustment eliminates a surplus?

• A)As the price rises,the quantity demanded decreases and the quantity supplied increases.
• B)As the price rises,the quantity demanded increases and the quantity supplied decreases.
• C)As the price falls,the quantity demanded decreases and the quantity supplied increases.
• D)As the price falls,the quantity demanded increases and the quantity supplied decreases.
• E)As the price falls,the demand for substitutes decreases,which eliminates the surplus.

---

Definitions:

College Textbooks

are specialized books designed to meet the curriculum needs of college courses, often characterized by detailed and technical content.

Technology Improvement

The process of developing and deploying new technologies to increase efficiency, enhance capabilities, or create new products and services.

Wage Rate

The amount of money paid to an employee per unit of time or piece of work completed.

Leisure

Time spent away from work and essential domestic activities, often used for rest, recreation, or cultural pursuits.