Suppose That Demand Increases and Supply Decreases

Multiple Choice

Suppose that demand increases and supply decreases. What would we expect to happen in the market?

A) Equilibrium price would decrease, but the impact on quantity would be ambiguous.
B) Equilibrium price would increase, but the impact on quantity would be ambiguous.
C) Both equilibrium price and quantity would increase.
D) Both equilibrium price and quantity would decrease.