Interpret the Following Statement: "Demand Exceeds the Available Quantity of Apartment

Interpret the following statement: "Demand exceeds the available quantity of apartment housing.If the price of apartment rentals were increased, demand would decrease and an equilibrium could be achieved."

A) The statement is correct.
B) The statement is incorrect because the price should be decreased, not increased, in order to achieve equilibrium.
C) The statement would be correct if it read "supply would decrease" in response to a price increase.
D) The statement is incorrect because it confuses "demand" with "quantity demanded."
E) The statement would be correct only if the terms "demand" and "supply" were interchanged.

Correct Answer:

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