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.

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Definitions:

Target Customers

Target customers are specific groups of people or organizations a business aims to reach with its products or services, identified by certain demographics, interests, or needs.

Personality Variables

Characteristics or traits that vary among individuals, influencing behavior and outcomes.

Market Segments

Subsets of a market comprised of individuals or organizations with one or more shared characteristics.

Tying Agreement

A type of agreement where the sale of one product (the tying product) is made conditional on the purchase of a second, distinct product (the tied product).