Which one of the following correctly describes how price adjustment eliminates a surplus?
a) As the price falls, the quantity demanded increases and the quantity supplied decreases.
b) As the price rises, the quantity demanded decreases and the quantity supplied increases.
c) As the price rises, the quantity demanded increases and the quantity supplied decreases.
d) As the price falls, the quantity demanded decreases and the quantity supplied increases.
e) As the price falls, the demand for substitutes decreases, which eliminates the surplus.
Answer: a) As the price falls, the quantity demanded increases and the quantity supplied decreases.
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Which of the following statements about GAPS analysis is most likely true?
A. There are a total of six steps in a GAPS analysis. B. The first step in GAPS analysis addresses the standards the organization has for your career objectives. C. The second step in a GAPS analysis identifies where you want to go with your career over the next year or so. D. The perceptions component of a GAPS analysis concerns how your abilities, skills, and behaviors affect others.
Which of the following are among the pitfalls to avoid when pursuing a low-cost provider strategy?
a. reducing costs in a way that rivals can easily replicate b. focusing insufficiently on cost reduction c. becoming overly concerned about cost reduction d. focusing too much on cutting prices