Answer:
Solution: First option
Explanation:
An increase in demand and a decrease in supply will cause an increase in the equilibrium price, but the effect on quantity is unclear.
Reasoning: For any quantity, the 'buyers' places a higher value on the goods, so the 'manufactures' must place higher values in order to distribute the good. Thus the price increases, but the output depends on the size of the two factors and which dominates, (1) pricing, (2) goods.