Shift of the Supply Curve
Microeconomics
A diagram showing how the whole supply curve can shift to the right or left when a non-price determinant of supply changes.
Curves and Elements
supply
Supply Curve (S): Shows the original relationship between price and quantity supplied.
increase in supply
Increase in Supply (S to S2): A rightward shift of the supply curve, meaning more is supplied at every price.
decrease in supply
Decrease in Supply (S to S1): A leftward shift of the supply curve, meaning less is supplied at every price.
non price determinants
Non-price Determinants: Factors other than the good’s own price that can shift the supply curve.
A shift of the supply curve occurs when quantity supplied changes at every price level.
An increase in supply shifts the supply curve to the right, from S to S2.
A decrease in supply shifts the supply curve to the left, from S to S1.
Supply can shift due to factors such as production costs, technology, taxes, subsidies, weather, expectations, or the number of producers.
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