After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?
A. Price will increase, and quantity will decrease.
B. Price will decrease, and quantity will decrease.
C. Price will decrease, and quantity will increase.
D. Price will increase, and quantity will increase.
Answer: D
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