Final answer:
To cause a decrease in the price of a good or service, factors such as an increase in supply or a decrease in production costs are needed. Increase in demand, decrease in supply, increase in production costs, and decrease in competition generally lead to higher prices.
Step-by-step explanation:
The price of a good or service is determined by the forces of supply and demand in the market. To identify a scenario that could cause the price of a good or service to decrease, one must analyze the factors that result in shifts in the supply or demand curves.
An increase in demand typically leads to higher prices as more consumers are looking to purchase the good or service, while a decrease in supply leads to higher prices as there are fewer goods or services available for the same number of buyers. An increase in production costs often leads to higher prices as producers need to cover these additional costs.
However, a decrease in competition can lead to higher prices due to less competitive pressure to keep prices low. None of these scenarios suggest a decrease in price. Yet, a factor that can lead to a price decrease would be an increase in supply without a corresponding increase in demand, leading to an excess supply and thus putting downward pressure on prices.
Other factors that may cause a shift in the supply curve and potentially lead to a decrease in price include technological advances, which can enhance production efficiency, a decrease in production costs, overall improvements in the business environment, or policies that provide subsidies or reduce taxes for producers.