Which of the Following Correctly Describes How Price Adjustments Eliminate

question 119

Multiple Choice

Which of the following correctly describes how price adjustments eliminate a shortage?

• A)As the price rises, the quantity demanded decreases while the quantity supplied increases.
• B)As the price falls, demand increases while supply decreases.
• C)As the price falls, the quantity demanded decreases while the quantity supplied increases.
• D)As the price rises, the quantity demanded increases while the quantity supplied decreases.

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