Which of the Following Statements Is Correct

question 80

Multiple Choice

Which of the following statements is correct?

• A)When both demand and supply decrease, the quantity decreases and the price might rise, fall or remain the same.
• B)When both demand and supply decrease, the quantity increases and the price might rise, fall or remain the same.
• C)When both demand and supply increase, the price rises and the quantity might increase, decrease or remain the same.
• D)When both demand and supply increase, the quantity decreases and the price might rise, fall or remain the same.

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Definitions:

Unit of Output

The basic measure of productivity or product which is generated by a production process, operation, or project.

Competitive Market Economy

A system where market forces govern the production, distribution, and pricing of goods and services, featuring many buyers and sellers and free entry and exit from the market.

Least-Cost

A principle or method of minimizing the costs of production or operation while achieving the desired output or quality.

Production Technique

Methods or processes used in the creation of goods or services, often focusing on increasing efficiency or quality.