9. Market Equilibrium

Suppose there is a market that is in equilibrium until there is a sudden increase in demand and increase in supply.

What happens to equilibrium price and equilibrium quantity?

A. Equilibrium quantity increases with certainty, but one cannot be certain what happens to equilibrium price without having magnitudes.

B. Both the equilibrium price and equilibrium quantity decreases.

C. Equilibrium price increases with certainty, but one cannot be certain what happens to equilibrium quantity without having magnitudes.

D. The equilibrium price decreases but the equilibrium quantity increases.