An Increase in Supply and a Decrease in Demand Occur

Multiple Choice

An increase in supply and a decrease in demand occur in a market. What happens to the equilibrium price and quantity?

A) The equilibrium price decreases; the change in the equilibrium quantity is uncertain.
B) The equilibrium price decreases; the equilibrium quantity increases.
C) The equilibrium price increases; the change in the equilibrium quantity is uncertain.
D) The equilibrium price increases; the equilibrium quantity decreases.