When demand curve shift rightward and supply curve shift leftward what impact this will have on pricing?

Option 1 -> When demand increases and supply decreases, both forces push prices upward, not downward.

Option 2 -> Prices cannot remain the same when both demand increases and supply decreases, as both create upward pressure on price.

Option 3 -> When demand curve shifts rightward (demand increases) and supply curve shifts leftward (supply decreases), both movements push prices higher. This is correct.

Option 4 -> While the impact on quantity may be ambiguous depending on the magnitude of shifts, the impact on price is certain - it will increase.

Hence, Option 3: Price increases -> When demand increases (rightward shift), buyers are willing to pay more at each quantity level, putting upward pressure on price. When supply decreases (leftward shift), sellers are willing to supply less at each price level, also putting upward pressure on price. Since both shifts work in the same direction, the price will definitely increase. The effect on equilibrium quantity is ambiguous and depends on the relative magnitude of the shifts, but the price effect is certain - it increases. -> correct