Which One of the Following Correctly Describes How Price Adjustment

question 69

Multiple Choice

Which one of the following correctly describes how price adjustment eliminates a surplus?

• A)As the price rises,the quantity demanded decreases and the quantity supplied increases.
• B)As the price rises,the quantity demanded increases and the quantity supplied decreases.
• C)As the price falls,the quantity demanded decreases and the quantity supplied increases.
• D)As the price falls,the quantity demanded increases and the quantity supplied decreases.
• E)As the price falls,the demand for substitutes decreases,which eliminates the surplus.

Understand the role of market structure, particularly oligopolies, in antitrust analysis.

Apply the rule of reason and per se analysis to evaluate business practices under the Sherman Act.

Recognize the significance of market power and monopoly power in antitrust law.

Identify the elements and legal consequences of tying agreements and vertical price-fixing.

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