Question

What is the causes of decrease in supply ?​

Answer 1

__________HEY MATE_________

CAUSES OF DECREASE IN SUPPLY------

⚫USE OF OUTDATED TECHNOLOGY, CAUSING A FALL IN EFFICIENCY AND RISE IN COST OF PRODUCTION.

⚫ INCREASE IN FACTOR PRICE, CAUSING INCREASE IN COST OF PRODUCTION.

⚫ INCREASE IN PRICE OF COMPETING PRODUCT.IT PROMPTS THE PRODUCER TO RESTRICT THEIR SUPPLIES AT THE PREVAILING PRICE.

HOPE THIS HELPS YOU ☺️

Answer 2

=> INCREASE IN FACTOR PRICE, CAUSING INCREASE IN COST OF PRODUCTION.

=>INCREASE IN PRICE OF COMPETING PRODUCT.IT PROMPTS THE PRODUCER TO RESTRICT THEIR SUPPLIES AT THE PREVAILING PRICE.