Suppose That the Market for Newspaper Is Initially in Equilibrium

Multiple Choice

Suppose that the market for newspaper is initially in equilibrium. Further suppose that there is both an increase in the price of ink and a decrease in the price of magazines, which people may read in place of a newspaper. Which of the following accurately describes the new equilibrium?

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