How does a supply shock affect equilibrium price and quantity?

A supply shock, such as a sudden increase in production costs or a natural disaster disrupting supply, typically leads to a decrease in the quantity supplied at existing prices. This shift in supply causes the equilibrium price to rise, as the reduced supply creates upward pressure on prices. Consequently, the equilibrium quantity in the market decreases, as consumers are willing to purchase less at the higher price. Overall, a supply shock results in higher prices and lower quantities exchanged in the market.