Which of the following is true of the interaction of supply and demand?
A) As the price increases, the quantity demanded and the quantity supplied will increase.
B) As the price increases, the quantity demanded and the quantity supplied will decrease.
C) As the price increases, the quantity demanded increases and the quantity supplied will decrease.
D) As the price increases, the quantity demanded will decrease and the quantity supplied will increase.
E) As the price increases, neither the quantity demanded nor quantity supplied will change.

Question

Quizplus · Accepted Answer

As the price increases, the quantity demanded typically decreases due to the law of demand, while the quantity supplied typically increases due to the law of supply.

Which of the Following Is True of the Interaction of Supply