Shifts in the Supply Curve

What does the market supply curve show?

The quantity supplied at each price assuming that all other things remain unchanged

What factors can shift a supply curve?

Input Prices, technology, expectations, number of sellers

What are input prices?

Any of the things that suppliers have to purchase to supply a product

Increases in supply will shift the supply curve where?

To the right

What inputs are important with Input Prices

Labor costs, real estate costs, and utilities

If any input costs increase what will happen to supply?

It will decrease the supply at every price causing the entire supply curve to shift to the left

How can expectations affect supply?

If suppliers expect prices to rise in the future then they may reduce the supply today and store current inventory in expectation of higher future prices

As more sellers enter the market what happens to supply?

It increases