Correct Option: B

The four basic laws of supply and demand are: (a) If demand increases and supply remains unchanged, a shortage occurs, leading to a higher price; (b) If demand decreases and supply remains unchanged, a surplus occurs, leading to a lower price; (c) If demand remains unchanged and supply increases, a surplus occurs, leading to a lower price; and (d) If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher price.