The supply of ice cream in town has decreased. which of the following circumstances most likely caused the reduction? a. a new vendor opened in a neighboring town. b. the costs of milk and sugar decreased. c. several competitors shut down for the season. d. winter began, and snow fell for two weeks.

C. Several competitors shut down for the season

Explanation:

Market Supply : Quantity of goods producers are willing & able to sell .

Factors affecting Supply : Price of the goods , Cost of Inputs , Technology , Other goods' price , Government policy , No. of sellers) .

Price & supply have positive relationship , inputs cost & supply have negative relationship , substitue goods price & suppy have negative relationship , govt tax have -ve & taxes have +ve relationship with supply , No. of sellers have positive relationship

'B' is linked to factor 'Inputs Cost' , but decrease in inputs cost would increase rather than decreasing supply (∵ higher profit) . 'D' is not linked with any factor of supply , is rather a factor affecting demand . 'A' & 'C' are linked to factor 'No. of Sellers' , but higher the no of  sellers - more is the supply , so 'A' is wrong (it will increase supply) and 'C' Competitors shutting down due to season will decrease Market (Town) Supply .

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