Option 1: Increase the price -> Both shifts push price upward.
Option 2: Decrease the price -> Incorrect, as both shifts create upward pressure on price.
Option 3: Price remain constant -> Incorrect, the shifts do not offset each other in terms of price.
Option 4: Price may increase or decrease -> Incorrect, price direction is certain in this case.
Hence, Option 1: Increase the price -> When supply curve shifts leftward, it means supply decreases (less goods available). When demand curve shifts rightward, it means demand increases (more buyers want the product). Both changes work in the same direction - they both push the equilibrium price UP. Decreased supply creates scarcity, and increased demand creates more competition for the limited goods. Together, these forces unambiguously increase the market price. Note: While price definitely increases, the effect on equilibrium quantity is ambiguous and depends on the magnitude of each shift. -> correct