A decrease in supply refers to a situation where producers are able and willing to offer less of a product at each price level. This can be caused by factors such as higher production costs, scarcity of resources, or natural disasters affecting production.
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Shift in Supply Curve: A shift in the supply curve occurs when there is a change in any factor other than price that affects the quantity supplied at each price level.
Inelastic Supply: Inelastic supply means that even with changes in price, the quantity supplied does not change significantly.
Shortage: A shortage occurs when the quantity demanded exceeds the quantity supplied at a given price.