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How Do Price Adjustments Eliminate a Shortage

Question 115

Multiple Choice

How do price adjustments eliminate a shortage?


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

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