Suppose the equilibrium price of oil has risen while the equilibrium quantity of oil has decreased. Which of the following events can explain this change in the market equilibrium? (Check all that apply.)

A. Buyers expected the price of oil to rise.

B. Equipment used to mine oil became more expensive.

C. OPEC lowered its production targets.

D. Incomes around the world decreased.

Consider the effects of the following two events on the market for cotton: (1) unfavorable whether makes cotton farming less productive; (2) consumer preferences shift from cotton fabrics to synthetic fabrics. What will happen to the equilibrium quantity of cotton as a result of these events?

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a.It will rise.

b. It will fall.

c. It may rise, fall, or remain unchanged.

d. It will remain unchanged.