Economics - Shifts in the Supply Curve
Shifts in the Supply Curve
Factors that change supply and shift the supply curve include:
* A change in the cost of production. Lower costs, with other things
remaining the same, including price, will mean greater profits and so
* Technological change. New technology invariably means greater
productivity, lower unit costs and increased supply.
* Natural disasters. Floods, bushfires and earthquakes, to name a few,
have the potential to severely restrict the supply of certain goods and
* Government action. Policies by the government, such as changes to
tariffs and subsidies, have
If the supply curve shifts to the right, it indicates an increase in
supply at each and every price. A decrease in supply is shown by the supply
curve shifting to the left.
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