Question

Name some factors that can cause a shift in the

supply curve in markets for goods and services.

Short answer

Supply Curve: Supply refers to the total amount of goods and services a producer is willing to supply in the economy at a given time. However, the supply curve is directly related to the prices. Higher prices lead to rise in supply and vice-versa this is called a positive relationship. This relationship works assuming all other factors are constant in nature.

Step-by-step solution

supply curve 

Supply Curve: Supply refers to the total amount of goods and services a producer is willing to supply in the economy at a given time. However, the supply curve is directly related to the prices. Higher prices lead to rise in supply and vice-versa this is called a positive relationship. This relationship works assuming all other factors are constant in nature.

factors of supply 

A. Production cost: when cost of input like labor, raw material increases the production cost goes up but if the prices do not increase simultaneously firms do not make enough profits. This will impact their supply decision to produce more or not. Thus, if production cost falls firms will supply more and the supply curve shifts right. B. Change in climate: weather conditions also impact the production of crops and other outputs, use of high yielding variety of seeds also increase supply of crops. C. Use of new technologies for production, government policies like taxes (regulations) impact supply. Economics Concept Introduction