One of the Implications of the Supply and Demand Model

question 338

Multiple Choice

One of the implications of the supply and demand model is that

• A) a rise in the price of a good always means that demand for it has increased.
• B) supply shifts to the left whenever demand falls.
• C) a market price below the equilibrium price will lead to a surplus.
• D) government action is not necessary for a market to achieve equilibrium.

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