Which of the Following Statements Is Incorrect

question 199

Multiple Choice

Which of the following statements is incorrect?

• A)if demand increases and supply decreases, equilibrium price will rise
• B)if supply increases and demand decreases, equilibrium price will fall
• C)if supply declines and demand remains constant, equilibrium price will rise
• D)if demand decreases and supply increases, equilibrium price will rise

---

Definitions:

Monopoly Power

The ability of a firm or entity to control or dominate an industry or sector, enabling it to set prices above competitors without losing significant market share.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing brands due to perceived satisfaction and quality.

Economic Efficiency

A condition where resources are allocated in a way that maximizes the net benefit to society, meaning no one can be made better off without making someone else worse off.

Economies of Scale

Cost benefits acquired by businesses due to the size of their operations, which causes a decrease in the cost per output unit as the operation's scale increases.