In a Standard Supply-And-Demand Diagram, What Happens When Demand Decreases

question 3

Multiple Choice

In a standard supply-and-demand diagram, what happens when demand decreases?

• A)Price declines and quantity demanded rises.
• B)Price rises and quantity demanded declines.
• C)Price and quantity supplied rise.
• D)Price and quantity supplied decline.
• E)Price and quantity demanded rise.

---

Definitions:

Exclusive Rights

Special privileges granted to an individual or organization, allowing them to be the sole party with the legal right to use, produce, or sell a particular product or service.

Franchisee

An individual or company that has been granted the right by a franchisor to use a specific business trademark, model, or formula in a particular location.

Royalties

Payments made to the owners of intellectual property, such as authors and inventors, for the use of their work.

Franchising

A business model that allows individuals or entities to operate a branch of an established company with its brand and business strategy.