How do bottlenecks and the founder effects lead to a decrease in genetic diversity
Does the decrease happen as there is the individuals left arent Representative of the original, or is it that the now smaller number cause chance events to have a bigger affect on gene pool-or both?
yes, for the founder effect. The colonised poulation is an unrepresentative of the original population. For example, lets say you have 100 rabbits, with alleles of AA,Aa and aa. 10 of those rabbits leave and colonise in a new island (hypothetically speaking here). That 10 will almost certainly not be representative of the 100 population. And lets say those 10 rabbits have the alleles aa, you've lost all ur AAs and all ur Aa. So you've lost genetic diversity.
Bottleneck is the same concept, where there is a reduction in size of a population due a chance event, thus reducing the allele frequency.