Which of the Following Statements Is Correct

question 66

Multiple Choice

Which of the following statements is correct?

• A) If demand increases and supply decreases,equilibrium price will fall.
• B) If supply increases and demand decreases,equilibrium price will fall.
• C) If demand decreases and supply increases,equilibrium price will rise.
• D) If supply decreases and demand remains constant,equilibrium price will fall.

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Definitions:

Assumptions

Premises or ideas accepted as true without proof, used as the basis for reasoning, discussion, or calculation.

Scientific Models

Simplified representations of complex systems or phenomena used to explain, predict, or control those systems or phenomena.

Reality

The state of things as they actually exist, as opposed to how they may appear or might be imagined.

Historical Episodes

Specific events or periods in history that are studied for their historical significance or impact.