What causes a decrease in supply?

A decrease in supply happens when there’s less of something to give out, just like when you have fewer toys to share with your friends.

Imagine you’re making chocolate chip cookies for a party, and suddenly you run out of chocolate chips. You still want to make as many cookies as possible, but without enough chocolate chips, you can’t make as many cookies as before. That’s like a decrease in supply, there are fewer cookies being made because one of the key ingredients is missing.

• If something needed to make the product gets more expensive or harder to find, like chocolate chips becoming super rare, then less can be made.
• If the people making the product decide they want to do something else instead, maybe they’d rather play video games than bake cookies, that also means fewer cookies will be made.

It’s like when your friend has to leave the game because they have to go home. Now there are fewer players, so the game isn’t as fun or active anymore.