Simple Supply and Demand?

Question

If it is discovered that wapanzo beans help prevent cancer then supply will ______ and demand will _____ .

up or down for each?

The price will fall and the equilibrium quantity might increase, decrease, or stay the same when the .

1. demand for a good decreases and the supply of it increases

2. demand for a good increases and the supply of it decreases

3. demand for and the supply of a good both decrease

4. demand for and the supply of a good both increase

I think it's one but the " increase, decrease, or stay the same" confuses me

Answer 1

Supply will go up (farmers will produce more expecting higher prices thus higher profits) - though in very-short-run supply will remain unchanged.

Demand will go up because people who afraid of cancer would tend to use more beans.

1. demand for a good decreases and the supply of it increases - is right answer - regarding quantities, we don't know result without knowing what changes more: supply or demand, so it might "increase, decrease, or stay the same".

Answer 2

demand for and the supply of a good both increase

In economics, supply and demand describes market relations between prospective sellers and buyers of a good. The supply and demand model determines price and quantity sold in a market. This model is fundamental in microeconomic analysis, and is used as a foundation for other economic models and theories. It predicts that in a competitive market, price will function to equalize the quantity demanded by consumers, and the quantity supplied by producers, resulting in an economic equilibrium of price and quantity. The model incorporates other factors changing equilibrium as a shift of demand and/or supply.