If the market experiences a simultaneous increase in demand and a decrease in supply, what is the most likely outcome on the equilibrium price and quantity?

When demand increases and supply decreases at the same time, the equilibrium price is likely to rise. This happens because more people want to buy the product, which puts pressure on prices to go up. At the same time, with less of the product available due to decreased supply, there is even more competition among buyers, further driving the price higher. For example, if a popular toy suddenly becomes very desirable during the holiday season but fewer toys are being produced, stores will raise prices because many people want to buy that toy but there aren't enough for everyone. As a result, while the quantity sold may decrease because of higher prices, the equilibrium price definitely increases.