Which of the following statements is (are) correct?

Select one:

A. A strong demand increase together with a weaker supplydecrease would necessarily result in a higher price and an increasein equilibrium quantity.  

B. A weak demand decrease together with a stronger supplyincrease would necessarily result in a lower price and an increasein equilibrium quantity.  

C. A weak demand increase together with a stronger supplyincrease would necessarily result in a lower price and an increasein equilibrium quantity.

D. All of the above

E. A and B, only

Values of quantity supplied and quantity demanded for specificprices in a particular market are listed. The quantity demanded atthe price of $28 is 1,000 units. At the price of $26, the quantitydemanded is 1,300 units and at the price of $24 the quantitydemanded is 1,600 units. The quantity supplied at the price of $28is 1,500 units. At the price of $26, the quantity supplied is 1,300units and at the price of $24 the quantity supplied is 1,100 units.(Hint: you may find it helpful to draw the graph). Which of thefollowing statements is (are) correct?

(x)   If the actual market price was$24, then a shortage of 500 units would exist andthe price would rise to $26, but not to$28.

(y)   If the actual market price was$28, then a surplus of 500 units would exist andprice would fall to $26, but not to$24

(z)   If the actual price was either$28 or $24, then the market wouldnot be in equilibrium and less than 1,300 units would be sold.

Select one:

A. (x), (y) and(z)

B. (x) and (y) only

C. (x) and (z) only

D. (y) and (z) only

E. (z) only