1. The equilibrium price of teddy bears is $5. A study comes out that says owning a teddy bear causes you to earn a lower salary. If all other factors are held constant, which of the following scenarios could happen?

a. The price of teddy bears increases to $7 because of a supply shift.

b. The price of teddy bears decreases to $4 because of a supply shift.

c. The price of teddy bears decreases to $4 because of a demand shift.

d. The price of teddy bears increases to $7 because of a demand shift.

e. The price of teddy bears increases to $7 because of both a demand shift and a supply shift.