Ceteris paribus, an increase in the supply of a good causes which ...

[@Brianna17]

Ceteris paribus, an increase in the supply of a good causes which of the following?
 a. Lowers the equilibrium price, and reduces the quantity bought and sold.
  b. Raises the equilibrium price, and raises the quantity bought and sold.
  c. Raises the equilibrium price, and increases the quantity bought and sold.
  d. Lowers the equilibrium price, and increases the quantity bought and sold.
  e. Equilibrium price and equilibrium quantity change are indeterminate.

Question 2

Suppose the market for soda X is in equilibrium. If the FDA announced today that this soda has been proven to cause a fatal disease, what would be most likely to happen to the equilibrium price and equilibrium quantity of soda X?
 a. Price increases and quantity increases
  b. Price decreases and quantity increases
  c. Price increases and quantity increases
  d. Price decreases and quantity decreases
  e. No change in price and quantity

[dantucker]

Answer to Question 1

d

Answer to Question 2

d