If the elderly percentage rises in a country but total dependency declines, which situation is possible?

Correct answer: Youth dependency may be falling faster than old-age dependency is rising

Total dependency combines youth dependency and old-age dependency. An increase in the elderly share can push old-age dependency upward, but total dependency depends on what happens to both dependent groups relative to the working-age population. If fertility has fallen, the number of children may decline rapidly. The reduction in youth dependency can be larger than the increase in old-age dependency, producing a lower total dependency ratio even while the elderly percentage rises.

Option A correctly describes this possibility. It does not say that old-age dependency must fall; it says that the decline in youth dependency can be faster than the rise in old-age dependency. Option B is too absolute because total dependency reflects both components. Option C would make the ratio undefined or economically meaningless, and option D is not required. The main lesson is that an ageing population and a falling total dependency ratio can occur together during demographic transition.