Supply

Shifts in supply:

• changes in input prices

  • an input is a good that is used to produce another good

  • ex: water, fertilizer, labor

• changes in the prices of related goods

  • ex: instead of hay, growing barley

• changes in technology

  • can produce more 

  • can produce more efficiently

  • ex: more efficient baler

• changes in expectations

  • ex: storing a good for future sale

• natural “supply shock”

  • weather events

  • political events

  • can be positive or negative

• changes in number of producers