Suppose the Cost of Harvesting Merino Wool Has Risen at the Same

Multiple Choice

Suppose the cost of harvesting merino wool has risen at the same time as consumer preference for merino wool has risen. In the market for merino wool, this would result in the equilibrium price ________ and the equilibrium quantity ________.

A) increasing; increasing or decreasing
B) increasing or decreasing; decreasing
C) decreasing; increasing or decreasing
D) increasing or decreasing; increasing