Which of the Following Statements Is Correct

question 10

Multiple Choice

Which of the following statements is correct?

• A)A change in demand or supply can only be caused by a change in price.
• B)A simultaneous decrease in demand and increase in supply will result in an increase in equilibrium price and uncertain effect on quantity.
• C)If price is currently above equilibrium, market adjustments will result in a decrease in price and quantity supplied.
• D)An increase in supply invariably leads to a shortage in the affected market.

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Definitions:

French And Raven

Refers to social psychologists John R. P. French and Bertram Raven who developed a framework of bases of power, explaining different forms of power and influence.

Referent Power

The influence one possesses based on others' admiration or respect towards them, often leveraging the desire of others to identify and be associated with the person.

Informational Power

Power derived from possessing knowledge or information that others find useful or valuable.

Skills And Abilities

The competences and capabilities that enable an individual to perform tasks or activities effectively.