Which of the Following Correctly Describes How Price Adjustments Eliminate

Multiple Choice

Which of the following correctly describes how price adjustments eliminate a shortage?

A) As the price rises, the quantity demanded increases while the quantity supplied decreases.
B) As the price rises, the quantity demanded decreases while the quantity supplied increases.
C) As the price falls, the quantity demanded decreases while the quantity supplied increases.
D) As the price falls, the quantity demanded increases while the quantity supplied decreases.