Decrease in Supply
A decrease in supply will shift the supply curve for a good to the left resulting in a lower equilibrium quantity and a higher equilibrium price in the market.
If there is a change in the price of a good, then there will be a move along the existing supply curve. However, if any of the other determinants of supply (costs, profitability, objectives of the firm) changes, then the whole supply curve will shift. The curve may shift left for example, if there is an increase in the firm's costs.
Supply Curve
The supply curve shows the quantity of a good or service that a firm is willing and able to supply at each given price over a given time period.
If there is an increase in supply the supply curve will shift to the right (S2) and if there is a decrease in supply the supply curve will shift to the left (S3).
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