[ukyfootball]

You have this backward. As the supply of a commodity increases, prices decrease, and demand increases. Decreasing the supply of a commodity will increase its price and decrease the demand for that commodity. (Assuming other factors affecting the demand remain constant.)

Actually you have this backward, though youre on the right track. Price is the driving factor. As prices increase, supply will increase and demand will decrease.

When prices decrease, the producer will not supply as much of the good.