An Increase in Demand and a Decrease in Supply Occur

Multiple Choice

An increase in demand and a decrease in supply 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.