Which of the Following Statements Are TRUE? I

Multiple Choice

Which of the following statements are TRUE? I. A high price for a good encourages consumers to economize on its use, seeking out alternatives. II. Rising prices give firms the incentive to bring more goods to the market. III. Firms that experience rising input prices will seek out substitute inputs and develop production technologies to conserve on the costly input.

A) I only
B) I and II only
C) II only
D) I, II, and III