Shifts in supply
The position of a supply curve will change following a change in one
or more of the
underlying determinants of supply. For example, a change in
as a change in labour or raw material costs, will shift the position of
the supply curve.
If costs rise, less can be produced at any
given price, and the supply curve will shift to the left.
If costs fall, more can be produced, and the
supply curve will shift to the right.
change in an underlying determinant of supply, such as a change in the
availability of factors, or changes in weather, taxes, and subsidies,
will shift the supply curve to the left or right.