The effect of an increase in demand for a commodity accompanied by a decrease in supply will be to?

A. raise the price of the commodity and affect the quantity in an indeterminate way
B. decrease the equilibrium quantity and affect the price in an intermediate way
C. raise its price as well as the equilibrium quantity
D. lower it price while affecting the equilibrium quantity in an interminate way

Correct Answer:

Option C – raise its price as well as the equilibrium quantity