Which of the Following Statements Is CORRECT

question 505

Multiple Choice

Which of the following statements is CORRECT?

• A) When demand decreases, both the price and the quantity increase.
• B) When demand increases, both the price and the quantity decrease.
• C) When supply increases, the quantity increases and the price falls.
• D) When supply decreases, both the price and the quantity decrease.

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Definitions:

Cue

A signal or stimulus that triggers a response or guides behavior in a particular direction.

Spoken Message

Information or communication conveyed through the medium of speech.

Encoding

The process of turning thoughts into communication, such as transforming ideas into spoken words or writing.

Decoding

The process of interpreting or making sense of a message or information, especially in communication or data analysis.