Which of the Following Statements Is True

question 123

Multiple Choice

Which of the following statements is true?

• A)A decrease in demand causes a decrease in equilibrium price;the decrease in price causes supply to decrease.
• B)A decrease in demand causes equilibrium price to fall;the decrease in price then results in a decrease in quantity supplied.
• 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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