Final answer:
If a firm expects the future price of their goods to decline, they will likely decrease their current market supply, resulting in the firm's supply curve moving to the left. This could occur due to changes in taste, income level, buying population, or price shifts of substitute products.
Step-by-step explanation:
The question you've asked pertains to the strategies a firm will likely employ should they predict a drop in the future price of a good they produce. Foreseeing such a decrease, the firm may choose to decrease their current market supply. By doing so, they are reducing the number of units that are available at every price level.
This is represented by the firm's individual supply curve decreasing and shifting to the left. This could happen due to multiple factors such as a decrease in popularity (taste) of the good, lower income levels (for a normal good), a drop in the population likely to buy, or a fall in the price of substitute products.
It is crucial to remember that the market ultimately determines prices - not the cost of production - and it's the changes in supply and demand factors that influence these prices.
Learn more about Supply and Demand