Which One of the Following Correctly Describes How Price Adjustment

question 147

Multiple Choice

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

• A)As the price falls, the quantity demanded increases and the quantity supplied increases.
• B)As the price rises, the quantity demanded decreases and the quantity supplied increases.
• C)As the price rises, the quantity demanded increases and the quantity supplied decreases.
• D)As the price falls, the quantity demanded increases and the quantity supplied decreases.
• E)As the price falls, the quantity demanded decreases and the quantity supplied increases.

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Definitions:

Prefix

A word, letter, or number placed before another indicating a relation to or modification of the original term's meaning.

Antitussive

relating to or denoting drugs used to prevent or relieve coughing.

Antiseptic

A substance that inhibits the growth of microorganisms on living tissue or surfaces, often used to prevent infection in wounds.

Anesthesia

The administration of drugs or other agents to eliminate sensation, typically to allow medical procedures or surgery without pain.