Suppose we are in the blueberry market. The initial equilibrium point is P=$5 and Q=23 Now suppose incomes decline and simultaneously fertilizer (input) prices increase. Question: After the shifts what happened to equilibrium price and quantity in the blueberry market?

A  Equilibrium quantity declined because the decrease in demand and supply both led to a decrease in quantity.  The equilibrium price declined.  This is due to the fact that we are not given information about the relative size of the shifts.  A decrease in demand tends to decrease price, but the decrease in supply tends to decrease price.

B  The change in equilibrium quantity is ambiguous.  A decrease in demand tends to decrease quantity, while a decrease in supply tends to increase quantity. The equilibrium price declined.  This is due to the fact that we are not given information about the relative size of the shifts.  A decrease in demand tends to decrease price, but the decrease in supply tends to decrease price.

C  Equilibrium quantity increased because the decrease in demand and supply both led to an increase in quantity.  The change in equilibrium price is ambiguous.  This is due to the fact that we are not given information about the relative size of the shifts.  A decrease in demand tends to decrease price, but the decrease in supply tends to increase price.

D  Equilibrium quantity declined because the decrease in demand and supply both led to a decrease in quantity.  The change in equilibrium price is ambiguous.  This is due to the fact that we are not given information about the relative size of the shifts.  A decrease in demand tends to decrease price, but the decrease in supply tends to increase price.