Arrange the following steps in the correct order that describe the impact of an increase in demand and a decrease in supply on market equilibrium: A) Market price increases B) Demand curve shifts right C) Supply curve shifts left D) New equilibrium quantity established

When demand increases, the demand curve shifts to the right, meaning more people want to buy a product at every price. At the same time, if supply decreases, the supply curve shifts to the left, indicating that less of the product is available. These two changes create a situation where there is more demand and less supply, leading to a higher market price. As the price rises, the market will eventually reach a new equilibrium where the quantity demanded matches the quantity supplied, establishing a new equilibrium quantity. For example, if a favorite toy becomes very popular but fewer are made, more parents will compete to buy it, driving the price up until a new balance is found.