Final answer:
When the supply curve moves from S0 to S1, it will result in a new equilibrium with a higher price and lower quantity. The impact on price and quantity depends on the elasticity of demand.
Step-by-step explanation:
When the supply curve moves from S0 to S1 given D0, it will result in a new equilibrium point, E1, with a higher price and a lower quantity than the original equilibrium point, E0. However, the exact impact on price and quantity will depend on the elasticity of demand.
If the demand curve is relatively inelastic (less responsive to price changes), the shift in supply will result in a new equilibrium with a much higher price and only a slightly smaller quantity. On the other hand, if the demand curve is relatively elastic (more responsive to price changes), the shift in supply will lead to a new equilibrium with a smaller increase in price and a relatively larger reduction in quantity.