Which of the Following Statements Is True

question 178

Multiple Choice

Which of the following statements is true?

• A)An increase in demand causes a change in equilibrium price; the change in price does not cause a further change in demand or supply.
• B)A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
• C)If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease.
• D)If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater.

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Definitions:

Time Course

The progression or sequence of events or states over a period of time, often used to describe the dynamics of processes in various contexts.

Axis I

A classification in some versions of the Diagnostic and Statistical Manual of Mental Disorders that refers to primary clinical symptoms that cause significant impairment.

DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a guide for diagnosing mental disorders.

Disorders

Medical or psychological conditions that disrupt normal functioning.