List the factors that change supply and shift the supply curve. Tell what happens to supply and the supply curve when there is an increase in the factor
What will be an ideal response?
The factors that change supply are technology, the number of sellers, expected future prices, prices of factors of production, and prices of related goods. An advance in technology, an increase in the price of a complement in production, an increase in expected prices, and an increase in the number of sellers all lead to an increase in supply and a rightward shift in the supply curve. An increase in the price of a substitute in production or an increase in the prices of factors of production leads to a decrease in supply and a leftward shift in the supply curve.
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What will be an ideal response?
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