Question

For supply, we know that the quantity supplied will increase as the price increases, ceteris paribus. What are the other variable that would affect supply and therefore either increase it (shift the curve right) or decrease it (shift the curve left)?

Answer 1

Cost of production: if the cost of production increases, production would fall and the supply curve would shift to the left. If the cost of production falls, it would encourage production and the supply curve would shift to the right.

2. Prices of related goods: if the price of related goods rises, producers would shift to the production of the related goods because they would earn greater revenue. Thus, the supply of the good would fall and the supply curve would shift to the left.

3. Number of suppliers: if the number of firms producing a good increases, supply would increase and the supply curve would shift to the right. If the number of suppliers fall, the supply curve would shift to the left.

4. Technological advancement: technological advancement can positively enhance production. This would lead to an increase in supply and the supply curve would shift to the right.

I hope my answer helps you

Step-by-step explanation: