Before summer 2008, if you wanted a cell phone in Bhutan, you only had one choice: B-Mobile, owned and operated by the government. Then, this past spring, a privately owned competitor, Tashi, was let in. What do you predict will happen to equilibrium price and quantity in the cell phone market?

Select one:

a.Both price and quantity will increase.

b.Price will decrease and quantity will increase.

c.Price will increase and quantity will decrease.

d.Both price and quantity will decrease.