Which one of the following correctly describes how price adjustments eliminate a surplus?
A) As the price rises, the quantity demanded will increase while the quantity supplied decreases.
B) As the price falls, the quantity demanded will decrease while the quantity supplied increases.
C) As the price falls, the quantity demanded will increase while the quantity supplied decreases.
D) As the price rises, the quantity demanded will decrease while the quantity supplied increases.
Correct Answer:
Verified
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Q5: The market clearing price is where:
A) the
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Q9: Which of the following explains why too
Q10: When the price of a good falls
Q11: If the supply curve shifts to the
Q12: An increase in supply is represented by:
A)
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