If demand increases while supply decreases, what is the likely impact on market equilibrium price and quantity?

When demand increases while supply decreases, the market equilibrium price is likely to rise, and the equilibrium quantity may change in different ways. An increase in demand means more people want to buy a product, which pushes prices up because sellers can charge more. At the same time, a decrease in supply means there are fewer products available to sell, which also drives prices higher as buyers compete for the limited items. For example, if more people want to buy bicycles, but fewer bicycles are being made, the price of bicycles will likely go up, and there may be fewer bicycles sold overall. This situation creates a new balance where buyers are willing to pay more, but the total number of bicycles available could be less than before.