Which of the Following Is True

question 78

Multiple Choice

Which of the following is true?

• A) If demand decreases, equilibrium price increases.
• B) If demand increases, equilibrium price decreases.
• C) If demand decreases, the demand curve shifts to the left.
• D) If demand decreases, the demand curve shifts to the right.

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Definitions:

Idle Production Capacity

Refers to the available but unused capacity within a manufacturing operation to produce goods.

Off-peak Pricing

A pricing strategy that involves offering lower prices during times of lower demand to encourage usage or purchase.

Online Travel Agency

A web-based platform that allows consumers to book travel-related services such as flights, hotels, and rental cars.

Music Streaming

A service that allows users to listen to music online without downloading it, by means of continuous data streaming.