Step-by-step explanation:
When a stone is dropped into a pond, ripples form and move in concentric circles outward. This can be treated as a point source emitting waves. And for point source emitting waves
Intensity of the wave I = Source power Ps/Area
⇒

⇒I∝1/r^2
Therefore, on increasing the distance r, the intensity of the wave decreases, this also means that the amplitude also decreases.