Factors that shift supply
cost of resources
A change in the price of something that producers use to make a product will cause a change in the supply of that product
A price ceiling generally results in this
A shortage
A price floor results in this
A surplus
example of how government regulations shift suppy
If a new law was passes which requires fast food workers to wash there hands after every customer they serve the supply of fast food would shift to the left.
expectations
If the price of a good is expected to change in the future the supply will change in the present
example of how expectations shift supply
If there is rain in the forecast the supply of umbrellas would go up
An example of a price floor
Minimum Wage
change in technology
New inventions can increase productivity causing the supply curve to shift to the right
An example of a price ceiling
Rent controlled housing
example of how subsidies shift supply
The government gives money to colleges in order to promote education, this causes the supply of education to shift to the right
subsidies
The government will sometimes offer financial incentives to companies that produce a specific type of product, which in turn affects the supply of that product.
example of how a change in technology shifts supply
The invention of the printing press caused the supply of books to increase
government regulations
creates more strict manufacturing atmospheres or requires producers to make their items to reflect new laws put in place
example of how taxes shift supply
if taxes on cotton increase, the supply of t-shirts would decrease and shift to the left if taxes on cotton decrease, the supply would increase because it would be cheaper to produce t-shirts
example of how the cost of resources shift supply
if the cost of leather increases, the supply of leather purses will decrease a decrease in the price of camera lenses would increase the supply of cameras because it would be cheaper to produce them
example of how worker productivity shifts supply
if workers become lazy, supply will shift to the left
worker productivity
the amount of supply for consumers depends on how productive workers are in a company
number of sellers
the amount of supply is determined by how many producers there are
taxes
the increase or decrease in taxes shifts the amount of supply of a product by increasing or decreasing the amount of profit that the producers receive
example of how the number of sellers shift supply
the more places that open that offer ear piercing, the more supply of people who can pierce your ears