Taylor's conjecture is correct because the population of 2000 in the city was more compared to the population in 2010 in the same city. This is because the population in 2000 was 935,426 and it had 848 more people in that same city compared to in 2010. Therefore Taylor is right since 2000's population is 848 more than 2010's population...
The quantity demanded would increase due to the cheaper price people would want to take advantage and buy it when it was on sale. There is not enough information to determine whether the supply or demand would maintain so D is your answer.