A decrease in supply can be brought about by __________. (LO5) a) a price increase b) a price decrease c) a random event like a hurricane or an earthquake d) a change in consumers' tastes or preferences

Supply refers to the quantity of a product or service that producers are willing and able to produce at various price levels, holding all other factors constant.

Some factors affecting supply include: 1. Prices of raw materials 2. Technology 3. Government policies and taxes/subsidies 4. Weather conditions (for agricultural products) 5. Number of suppliers

a) A price increase - This would typically lead to an increase in supply as producers are more willing to supply at higher prices. Therefore, this option does not align with the requirement of a decrease in supply. b) A price decrease - This would usually lead to a decrease in supply as producers are less willing to produce when prices are lower. However, the question is asking for a factor that can "bring about" a decrease in supply, and the price decrease is an outcome of a decrease in supply, not a cause. c) A random event like a hurricane or an earthquake - Random events, such as natural disasters, can affect the production and distribution of goods and services. These events can disrupt the supply chain and force producers to cut back on production, thus leading to a decrease in supply. d) A change in consumers' tastes or preferences - This factor influences the demand for a product, not the supply directly. However, if consumers' tastes or preferences change and demand for a product decreases, producers may reduce their supply in response.

The option that best describes a factor that can "bring about" a decrease in supply is: c) A random event like a hurricane or an earthquake