If Demand Increases and Supply Decreases

Multiple Choice

If demand increases and supply decreases

A) the market clearing price definitely will increase, and the equilibrium quantity definitely will increase.
B) the market clearing price definitely will increase, and the equilibrium quantity definitely will decrease.
C) the market clearing price definitely will increase, but the change in the equilibrium quantity cannot be determined without more information.
D) the equilibrium quantity definitely will decrease, but the change in the market clearing price cannot be determined without more information.