The correct response is: As supply decreases, demand increases.
In basic economic theory, when supply decreases (meaning there are fewer goods available), the price tends to rise, leading to an increase in demand as consumers may perceive the goods to be more valuable or scarce. Conversely, if supply increases, the price may decrease, which can lead to an increase in demand as the goods become more affordable. Supply and demand are not always equal; market equilibrium occurs when the quantity supplied equals the quantity demanded at a certain price point.