If the demand for a product is elastic and there is a significant increase in the cost of production leading to a leftward shift in the supply curve, what is the likely outcome in terms of market equilibrium?

When the demand for a product is elastic, it means that consumers are sensitive to price changes. If the cost of production increases significantly, producers will supply less of the product, shifting the supply curve to the left. This decrease in supply can lead to higher prices for the product. Since demand is elastic, the higher price will likely cause a large drop in the quantity demanded, as consumers may look for alternatives or buy less of the product. For example, if the price of a popular snack increases due to higher production costs, many people might choose to buy a different snack instead, resulting in a new market equilibrium with fewer sales at a higher price.