Causes of a decrease in supply
- an decrease in the price of jointly supplied goods/product
- increase in the price of a competitively supplied commodity
- a change in objective of the producer from sales-revenue maximization to profit maximization
- breakdown of infrastructure
- increase in the cost of production
- depreciation of capital/machine
- fall in efficiency of factors of production
- decrease in supply of factors of production/raw material
- increase in tax or removal of subsidies
- working conditions becoming unfavorable
- gestation period becoming longer
- decrease in the number of producer/firms
- expectations of future increase in price
- fall/decrease in the demand of the product
CATEGORIES Economics
TAGS Dr. Bbosa Science
