When the supply of an asset decreases while the demand remains constant, a shortage occurs. This shortage happens because there are fewer units of the asset available than market participants want to build position. As a result, the price of the asset tends to rise. This price increase is a natural response to the lower supply, as sellers can charge more due to the limited availability of the asset.

Key Points:
• Decreased Supply: Fewer units of the product are available.
• Constant Demand: The number of market participants want to build position in the asset does not change.
• Shortage: The supply falls short of the demand, leading to a scarcity of the asset.
• Price Increase: Due to the shortage, sellers raise the price, as consumers are willing to pay more to obtain the asset.