How Do Price Adjustments Eliminate a Surplus

question 173

Multiple Choice

How do price adjustments eliminate a surplus?

• A) As price rises, quantity demanded decreases and quantity supplied increases.
• B) As price rises, quantity demanded increases and quantity supplied decreases.
• C) As price falls, quantity demanded decreases and quantity supplied increases.
• D) As price falls, quantity demanded increases and quantity supplied decreases.
• E) None of the above are true.

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Definitions:

Promising Alternative

An option that shows potential to be effective or beneficial in comparison to others.

Decision-Critical Attributes

The essential qualities or factors that significantly influence the outcome of a decision-making process.

Essential Criterion

A fundamental standard or requirement that a concept, proposal, or candidate must meet.