Final answer:
When the quantity of supply goes down, Mac's supply curve will shift to the left, resulting in an increase in the equilibrium price and a decrease in the equilibrium quantity.
Step-by-step explanation:
If Mac and Ethan's supply and demand for Bails are initially at equilibrium and the quantity of supply by Mac decreases, it would result in a shift of Mac's supply curve. The decrease in the quantity of supply implies that Mac is willing to supply fewer units of Bails at each price level. This shift is represented by a leftward movement of Mac's supply curve. As a consequence, the new equilibrium point will be at a higher price and a lower quantity, reflecting the reduced availability of Bails from Mac. The overall market equilibrium may be disrupted, and the price for Bails could increase due to the reduced supply. This change reflects the fundamental relationship between supply and price in the market, highlighting how shifts in supply curves can impact equilibrium conditions and ultimately influence the market dynamics for a particular good or service.