can you demonstrate graphically and explain verbally the impact on
price and quantity when supply decreases and demand is highly elastic.

Hello jlea427,

When demand is highly elastic, it will be a relatively horizontal
curve.  Therefore, on a Supply and Demand graph, when demand is highly
elastic, supply changes will result in  large changes in the
equilibrium quantity and small changes in the equilibrium price.  This
means that a decrease in supply will result in a small increase in the
equilibrium price and a large decrease in the equilibrium quantity.

http://www.sparknotes.com/economics/micro/elasticity/section1.html
gives this information, and figure 1.6 on this page is the graph that
you're looking for.  The shift that you have described is from curve
S_2 to curve S_1.

Let me know if you need any additional information.

-chis