Solved

Which of the Following Statements Is True

Question 432

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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents