Which Statement Is Not Correct

question 66

Multiple Choice

Which statement is not correct?

• A)If demand increases and supply decreases, price will rise and the quantity exchanged may either rise or fall.
• B)If supply increases and demand decreases, price will fall and the quantity exchanged may either rise or fall.
• C)If supply declines and demand remains constant, price will rise and the quantity exchanged will rise.
• D)If demand and supply increase, the quantity exchanged will rise and price may either rise or fall.

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Definitions:

Wage Rate

The standardized amount of compensation received by an employee for performed work per unit of time, typically expressed per hour or year.

Bushel of Corn

A unit of measure for volumes of dry commodities, typically used in the U.S. for agricultural goods like corn, where one bushel equals approximately 56 pounds.

Workers

Individuals engaged in an activity, especially to earn an income.

Equilibrium Market Wage

The wage rate at which the quantity of labor supplied matches the quantity of labor demanded.