Question

The market for a good is in equilibrium. What is the effect on equilibrium price and quantity if the increase in market demand is less than the increase in market supply?

Answer 1

When the increase in market demand is less than the increase in market supply, then the equilibrium price will fall but the equilibrium quantity will rise. The diagram illustrates the point.
In the diagram, when the supply curve shifts to the right from $S_1{S}_1$ to $S_2{S}_2$ and demand curve shifts to the right from $D_1{D}_1$ to $D_2{D}_2$ the equilibrium price falls from OP to $O{P}_1$ but the equilibrium quantity rises from OQ to $O{Q}_1$.