Answer:
An increase in market demand and a relatively smaller decrease in market supply would result in a shift in the demand curve to the right and the supply curve to the left, causing the equilibrium price to increase and the equilibrium quantity to increase as well. The increase in market demand leads to a higher demand for goods, which drives the price up, while the relatively smaller decrease in market supply leads to a lower availability of goods, further driving the price up. This results in a new higher equilibrium price and a higher equilibrium quantity.