Answer:
Equilibrium price to be indeterminate from the information given, but equilibrium quantity to rise.
Explanation:
In a perfectly competitive market, supply and demand work toghether to determine prices and quantities.
The interaction generates three scenarios, equilibrium, shortage and surplus.
The equilibriun point is the one at which quantity supply equals the quantity demanded. Price in equilibrium is the equilibrium price and the quantity in equilibrium is the equilibrium quantity.
When prices are set above or below the equilibrium price, desequilibrium occurs and results in shortage or surpluses.
In the law of demand, there are two scenarios. High prices means low quantities demanded. And low prices means high quantities demanded.
One of the reason the demand curve could shift is the prices of related products:
-Substitutes. products that can be used in place of other products. Increase in price of one increases the demand for other.
-Complements. related goods used toghether. Use of one increases the use of the other.
One of the reason the supply curve could shift are the costs of inputs. If the costs of production increase or decrease will impact supply.
In this case, kayaks and paddlers are substitutes. As the quantity supply of paddlers decrease, the quantity of kayaks will increase.
