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.

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Definitions:

Local Businesses

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The idea that globalisation has led to a level playing field in terms of commerce, enabling all countries to compete equally.

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An American journalist, author, and three-time Pulitzer Prize winner known for his writings on globalization and technology.

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