If a tax increase causes demand to decrease and a technological advancement causes supply to increase, what is the expected outcome for equilibrium price and quantity?

• A. Both equilibrium price and quantity increase.
• B. Equilibrium price decreases, and equilibrium quantity is ambiguous.
• C. Equilibrium price increases, and equilibrium quantity is ambiguous.
• D. Equilibrium price is ambiguous, and equilibrium quantity increases.

Answer: (B)