In answering the following question, it may be helpful to draw a supply and demand diagram. What is the effect on equilibrium price and quantity of an decrease in both supply and demand?

a. There is an increase in equilibrium price and an increase in equilibrium quantity.

b. There is no changein equilibrium price but a decrease in equilibrium quantity.

c. There is a decrease in equilibrium price and an increase in equilibrium quantity.

d. There is no change in equilibrium price or quantity.

e. There is an ambiguous effect on equilibrium price and a decrease in equilibrium quantity.