Suppose That the Market for Computers Is Initially in Equilibrium

Multiple Choice

Suppose that the market for computers is initially in equilibrium. Further suppose that there is an increase in the price of computer software. Which of the following accurately describes the new equilibrium in the computer market?

A) The equilibrium price will rise; the equilibrium quantity will fall.
B) The equilibrium price will rise; the equilibrium quantity will rise.
C) The equilibrium price will fall; the equilibrium quantity will fall.
D) The equilibrium price will fall; the equilibrium quantity will rise.