non-price determinants of supply (7)

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What happens to supply when production costs increase?
Supply decreases and shifts left.
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What happens to supply when production costs decrease?
Supply increases and shifts right.
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What are examples of production costs?
Wages, salaries, energy, machinery and raw materials.
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How does improved technology affect supply?
Supply increases because productivity rises and costs fall.
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Why does improved technology increase supply?
Firms can produce more using the same or fewer resources.
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What happens when more firms enter a market?
Supply increases.
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What happens when firms leave a market?
Supply decreases.
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How do expected future price increases affect current supply?
Current supply decreases because firms hold stock for later sale.
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How do expected future price decreases affect current supply?
Current supply increases.
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How do taxes affect supply?
Supply decreases because production costs rise.
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How do subsidies affect supply?
Supply increases because production costs effectively fall.
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How do higher prices of alternative products affect supply?
Producers switch resources away from the current product so supply decreases.
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What are the six major determinants of supply?

Costs of production, technology, number of sellers, producer expectations, prices of related goods produced, and taxes/subsidies.