3. In this question, you'll be working with the Louisville snack food market, which includes all snack foods like granola bars, chips and candy sold within the city of Louisville. You'll be predicting how each of the various events most likely affects the current equilibrium price and quantity of Louisville snack food. E.g., if you believe that the first event leads to a decrease in the current equilibrium price and quantity of snack food sold within Louisville, then your answer would be "B". Note that you'll want to approach this question by first determining how the curve(s) in the demand and supply model for this market would shift, and then use that shift(s) to decide on how the equilibrium price and quantity will change. Events: a. Decrease in the price of soft drinks within Louisville, a complement to snack food. b. Decrease in the price of snack food substitutes in the Louisville area c. Decrease in the cost of various ingredients that go into the making of most snack foods d. Rising gas prices increase the cost of distribution for all goods sold within Louisville e. 5% increase in the local population within Louisville as students return to school at the beginning of the Fall semester Effect: AP* and AQ* in the Louisville snack food market A. Increase in equilibrium price and increase in equilibrium quantity B. Decrease in equilibrium price and decrease in equilibrium quantity C. Increase in equilibrium price and decrease in equilibrium quantity D. Decrease in equilibrium price and increase in equilibrium quantity