Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A)An increase in demand causes an increase in the equilibrium price; the increase in price causes supply to increase.
• B)A decrease in supply causes the equilibrium price to rise; the increase in price then results in a decrease in quantity demanded.
• C)If both demand and supply decrease,there must be a decrease in the equilibrium price; equilibrium quantity may either increase or decrease.
• D)If demand increases and supply decreases one cannot determine if the equilibrium price will increase or decrease without knowing which change is greater.

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Definitions:

Creative Solution

An innovative or imaginative resolution to a problem that is not obvious and often involves seeing the situation in a new way.

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Abstract ideas or principles that are defined by clear, consistent rules or characteristics.

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The ability to generate new, diverse, and unique ideas, solutions, or products through imaginative skill and original thinking.