effect on price and quantity when demand increases and supply decreases, in short

When demand increases and supply decreases, the following effects are typically observed in the market:

1. Price Increase: As demand increases, more consumers are willing to purchase the product at higher prices. This drives up the price of the product.

2. Quantity Decrease: On the other hand, when supply decreases, there are fewer products available. This can further increase the price as consumers compete for the limited supply.

3. Equilibrium Shift: The point where the supply and demand curves meet, known as the equilibrium, will shift. The price will increase and the quantity will decrease until a new equilibrium is found.

4. Shortage: If the supply cannot meet the demand, a shortage can occur. This can further drive up prices as consumers are willing to pay more for the limited supply.

In summary, when demand increases and supply decreases, prices typically rise and the quantity available decreases.