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Determinants of Supply
Factors that influence the supply of goods and services, including input costs, government influence, technology, global economy changes, and future price expectations.
Future Price Expectations
Predictions about the direction in which prices will move, determining how businesses adjust their current supply.
Rightward Shift in Supply Curve
An increase in supply, where more goods are available at every price level.
Leftward Shift in Supply Curve
A decrease in supply, where fewer goods are available at every price level.
Input Costs
The costs incurred by businesses for raw materials, labor, and equipment necessary for production.
Subsidies
Government payments that help reduce production costs for businesses, leading to an increase in supply.
Regulations
Government rules that can either increase or decrease supply, impacting production efficiency and costs.
Excise Taxes
Taxes levied on specific goods that typically make production more expensive and decrease supply.
Global Events
Situations occurring in one country that affect the supply of goods in another country due to disruptions.
Technology Advancements
Improvements in production processes and tools that allow for increased efficiency and supply.
Movement Along the Supply Curve
Changes in quantity supplied in response to a change in the price of the good itself.
Market Competition
The number of suppliers in the market, influencing overall available supply.
Real-World Example
Practical instances drawn from everyday life that illustrate economic concepts, such as supply shifts.
Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity supplied.
COVID-19
A recent global pandemic that caused significant shifts in various supplies due to disruptions in production and shipping.
