Which One of the Following Correctly Describes How Price Adjustment

Multiple Choice

Which one of the following correctly describes how price adjustment eliminates a shortage?

A) As the price falls, the quantity demanded increases and the quantity supplied increases.
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 increases and the quantity supplied decreases.
E) As the price falls, the quantity demanded decreases and the quantity supplied increases.