Suppose That the Market for Soybeans Is Initially in Equilibrium

Multiple Choice

Suppose that the market for soybeans is initially in equilibrium. Further suppose that there is a decrease in the price of fertilizer. Which of the following accurately describes the new equilibrium?

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.