Question

What are the causes of a decrease in supply?

Answer 1

Step-by-step explanation:

One cause could be that the demand has risen to high and supplies are in short. Another reason is that whatever the supply may be, it could probably be rare already.

Answer 2

1. An increase in resource prices.

2. A decrease in production technology.

3. An increase in the price of a substitute-in-production or a decrease in the price of a complement-in-production.

4. Expectations by sellers of an increase in the price in the future.

A decrease in the number of sellers in the market.