Define the law of supply. If the supply of a product decreases and the demand for that product simultaneously increases, what would happen to the equilibrium price and quantity?

Law of supply states that, other things held constant, if the price of a good increases, the quantity supplied of the goods increases and vice-versa. It means there is a positive or direct relationship between price and quantity supplied.

If the supply of a product decreases, the supply curve will shift leftward and if the demand for that product simultaneously increases, the demand curve will shift rightward. So, the new equilibrium will be established at a higher price, but it is impossible to determine equilibrium quantity unless we know the elasticity of demand and supply curve.

Thus, if supply of a product decreases and the demand for that product simultaneously increases, the equilibrium price will increase and quantity is indeterminate.