Question

One hundred clothing stores go out of business. This will _____ the supply of clothes at each price level.

increase
decrease

Answer 1

decrease is the answer your looking for

Answer 2

If stores are closing or going out of business, then there is a decrease in the demand. As an effect, this will also decrease the supply of clothes at each price level. However, note that when there will be a price increase, the quantity decreases.