Question 10 1 pts y market demand increases the new equilibr

Question 10 1 pts y, market demand increases, the new equilibrium wil If market supply decreases show: and, simultaneousl O market price will decrease, and market quantity exchanged will increase. O market price will increase, and market quantity exchanged will decrease O market price will increase, and the quantity exchanged could increase, decrease, or remain the same. O market price could increase, decrease, or remain the same, and quantity exchanged will increase. O market price will increase, decrease, or remain the same, and quantity exchanged will decrease.

Solution

a) The market price will increase but the quantity exchanged will increase, decrease or may remain the same. The answer is \"C\".

b) The total surplus will decrease by 1. The answer is \"A\". Total surplus before was (4x4) 16 and now it is (3x5) 15.