Question

13) Which one of the following correctly describes how price adjustment eliminates a surplus? A) As the price rises, 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 falls, the quantity demanded increases and the quantity supplied decreases. D) As the price falls, the demand for substitutes decreases, which eliminates the surplus. E) As the price falls, the quantity demanded decreases and the quantity supplied increases.