Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true?

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

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Definitions:

High-Grade Mineral

Minerals that contain a high percentage of a desired material, making them economically feasible to mine.

Economically Depleted

Refers to a condition where a resource has been exploited to the point where it is no longer profitable to extract or use.

Mineral Resource

Natural concentrations of minerals or, in some cases, organic material, that can be extracted and processed into useful products at a profit.

Diamonds

A hard, precious stone made of crystalline carbon, renowned for its brilliance and often used in jewelry.