In the midst of the financial crisis, crude oil prices declined dramatically, by 65% in just a few months, while quantities also declined. How many of the following could be consistent with this observation? Please note if an outcome is ambiguous, then all outcomes are consistent. For instance, if given shifts cause prices to definitely decrease and quantities to be ambiguous, then prices dropping and quantities also dropping is a possible outcome. Assume a perfectly competitive market.

Supply shifts out, demand shifts out

Supply shifts out, demand shifts in

Supply shifts in, demand shifts out

Supply shifts in, demand shifts in.

a. 1

b. 2

c. 3

d. 4

e. None of the above are consistent with the observation.