Final answer:
An increase in production costs is most likely to reduce the supply of Nintendo video games, as it can lead to firms shutting down or reducing output.
Step-by-step explanation:
The most likely factor to cause a reduction in the supply of Nintendo video games is an increase in production costs. When the cost of production goes up, it becomes more expensive for Nintendo to produce and distribute their video games, which can lead to a decrease in the quantity of games supplied.In contrast, a decrease in demand for Nintendo video games, introduction of new gaming consoles, or expansion of distribution channels would not directly affect the supply of Nintendo video games. These factors may affect the demand for Nintendo games or the competition in the market, but they would not cause a reduction in the supply.
The most likely cause for a reduction in the supply of Nintendo video games is an increase in production costs. This can occur when input costs rise, such as when wages increase, leading to higher overall production expenses for firms. As a result, some firms might incur economic losses and choose to shut down or reduce their output, which shifts the supply curve to the left and decreases the quantity supplied at any given price.