Daisy is a milk farmer in a perfectly competitive market. The market price of milk is $$0\mathrm{.}15$ per gallon, which is also the marginal cost. If Daisy charges $$0\mathrm{.}25$ per gallon, she will:

not sell any milk.

sell more milk than the other farmers.

sell the same amount of milk as she did when she charged $$0\mathrm{.}15$ per gallon.

increase her profitability by $$0\mathrm{.}10$ per gallon.

What happens to the equilibrium price and quantity when demand decreases and simultaneously supply increases, and the demand shift is smaller than the supply shift?

The equilibrium price rises, and the equilibrium quantity falls.

Both the equilibrium price and quantity rise.

The equilibrium price falls, and the equilibrium quantity rises.

Both the equilibrium price and quantity fall.