Which of the Following Statements Is Correct

question 117

Multiple Choice

Which of the following statements is correct?

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

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Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Division of Labor

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Mechanistic Management

A management approach characterized by a highly structured and formalized workplace, clear hierarchies, and rigid division of labor.

Customer Needs

Customer needs are the recognized desires or requirements that clients expect to be fulfilled by a product or service.