How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitive market; that is, do price and quantity increase or decrease, or are the answers indeterminate because they depend on the magnitudes of the shifts? a. Supply decreases and demand is constant. b. Demand decreases and supply is constant. c. Supply increases and demand is constant. d. Demand increases and supply increases. e. Demand increases and supply is constant. f. Supply increases and demand decreases. g. Demand increases and supply decreases. h. Demand decreases and supply decreases.

A. Equilibrium price up and equilibrium quantity down

B. Equilibrium price down and equilibrium quantity down

C. Equilibrium price down and equilibrium quantity up

D. Equilibrium indeterminate and equilibrium quantity up

E. Equilibrium price up and equilibrium quantity up

F. Equilibrium price down and equilibrium quantity indeterminate

G. Equilibrium price up and equilibrium quantity indeterminate

H. Equilibrium price indeterminate and equilibrium quantity down

Explanation:

a. Supply decreases and demand is constant - Equilibrium price up and equilibrium quantity down

b. Demand decreases and supply is constant - Equilibrium price down and equilibrium quantity down

c. Supply increases and demand is constant - Equilibrium price down and equilibrium quantity up

d. Demand increases and supply increases - Equilibrium indeterminate and equilibrium quantity up

e. Demand increases and supply is constant - Equilibrium price up and equilibrium quantity up

f. Supply increases and demand decreases - Equilibrium price down and equilibrium quantity indeterminate

g. Demand increases and supply decreases - Equilibrium price up and equilibrium quantity indeterminate

h. Demand decreases and supply decreases - Equilibrium price indeterminate and equilibrium quantity down