# data[].attributes.body
Hello and Welcome my name is Yustina Bouls and this is an introduction about the topic that I'm going to be representing on my wall which is "Shifts in Supply curve- determinates".
It is expected to learn about what happened when the supply curve shifts right or left and how it its affected.

# data[].attributes.body
This video is very informative as it explains that there is a huge difference between shifting along the supply curve which represents the change in quantity supplied, and shifting the whole supply curve, which represents the shift in supply.

An increase in supply will lead to a downward shift in the supply curve, causing the quantity supplied to increment. That means that when there is an increase in supply the quantity supplied will go up (as long as the price stays the same). That makes sense especially with the examples given in this video.

# data[].attributes.attachment_link.title
Change in supply versus change in quantity supplied | AP Macroeconomics | Khan Academy

# data[].attributes.body
This picture represents an increase in supply. A change that will lead to an increase in the quantity of good or service at each price will lead to shift horizontally to the right in the supply curve.

# data[].attributes.body
In this video it will explain the following points:
- The simultaneous shift in the supply and the demand curves.
-for example: When there is an increase in demand and increase in supply the quantity is going to increase however the price increases when there is an increase in demand but decreases when there is an increase in supply .

# data[].attributes.attachment_link.title
Shifts in both Supply and Demand Curves - Intro to Microeconomics

# data[].attributes.attachment_link.title
Shifts versus Movements along the Supply curve

# data[].attributes.attachment_link.description
Price isn't the only thing that affects the quantity supplied.

# data[].attributes.attachment_link.readable_text
What Is the Law of Supply and Demand?

The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand.

As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows.

Levels of supply and demand for varying prices can be plotted on a graph as curves. The intersection of these curves marks the equilibrium, or market-clearing price at which demand equals supply, and represents the process of price discovery in the marketplace.

Understanding the Law of Supply and Demand

It may seem obvious that in any sale transaction the price satisfies both the buyer and the seller, matching supply with demand. The interactions between supply, demand, and price in a (more or less) free marketplace have been observed for thousands of years.

Many medieval thinkers, like modern day critics of market pricing for select commodities, distinguished between a "just" price based on costs and equitable returns and one at which the sale was in fact transacted. Our understanding of price as a signaling mechanism matching supply and demand is rooted in the work of Enlightenment economists who studied and summarized the relationship.

Importantly, supply and demand do not necessarily respond to price movements proportionally. The degree to which price changes affect the product's demand or supply is known as its price elasticity. Products with a high price elasticity of demand will see wider fluctuations in demand based on the price. In contrast, basic necessities will be relatively inelastic in price because people can't easily do without them, meaning demand will change less relative to changes in the price.

Price discovery based on supply and demand curves assumes a marketplace in which buyers and sellers are free to transact or not, depending on the price. Factors such as taxes and government regulation, the market power of suppliers, the availability of substitute goods, and economic cycles can all shift the supply or demand curves or alter their shapes. But so long as buyers and sellers retain agency, the commodities affected by these external factors remain subject to the fundamental forces of supply and demand. Now let's consider in turn how demand and supply respond to price changes.

The Law of Demand

The law of demand holds that demand for a product changes inversely to its price, all else being equal. In other words, the higher the price, the lower the level of demand.

Because buyers have finite resources, their spending on a given product or commodity is limited as well, so higher prices reduce the quantity demanded. Conversely, demand rises as the product becomes more affordable.

As a result, demand curves slope downward from left to right, as in the chart below. Changes in demand levels as a function of a product's price relative to buyers' income or resources are known as the income effect.

Naturally, there are exceptions. One is Giffen goods, typically low-priced staples also known as inferior goods. Inferior goods are those that see a drop in demand when incomes rise because consumers trade up to higher-quality products. But when the price of an inferior good rises and demand goes up because consumers use more of it in place of costlier alternatives, the substitution effect turns the product into a Giffen good.

At the opposite end of the income and wealth spectrum, Veblen goods are luxury goods that gain in value and consequently generate higher demand levels as they rise in price because the price of these luxury goods signals (and may even increase) the owner's status. Veblen goods are named for economist and sociologist Thorstein Veblen, who developed the concept and coined the term "conspicuous consumption" to describe it.

The Law of Supply

The law of supply relates price changes for a product with the quantity supplied. In contrast with the law of demand the law of supply relationship is direct, not inverse. The higher the price, the higher the quantity supplied. Lower prices mean reduced supply, all else held equal.

Higher prices give suppliers an incentive to supply more of the product or commodity, assuming their costs aren't increasing as much. Lower prices result in a cost squeeze that curbs supply. As a result, supply slopes are upwardly sloping from left to right.

As with demand, supply constraints may limit the price elasticity of supply for a product, while supply shocks may cause a disproportionate price change for an essential commodity.

Equilibrium Price

Also called a market-clearing price, the equilibrium price is the price at which demand matches supply, producing a market equilibrium acceptable to buyers and sellers.

At the point where an upward-sloping supply curve and a downward-sloping demand curve intersect, supply and demand in terms of the quantity of the goods are balanced, leaving no surplus supply or unmet demand. The level of the market-clearing price depends on the shape and position of the respective supply and demand curves, which are influenced by numerous factors.

Factors Affecting Supply

In industries where suppliers are not willing to lose money, supply will tend to decline toward zero at product prices below production costs.

Price elasticity will also depend on the number of sellers, their aggregate productive capacity, how easily it can be lowered or increased, and the industry's competitive dynamics. Taxes and regulations may matter as well.

Factors Affecting Demand

Consumer income, preferences, and willingness to substitute one product for another are among the most important determinants of demand.

Consumer preferences will depend, in part, on a product's market penetration, since the marginal utility of goods diminishes as the quantity owned increases. The first car is more life-altering than the fifth addition to the fleet; the living-room TV more useful than the fourth one for the garage.

What Is a Simple Explanation of the Law of Supply and Demand?

Why Is the Law of Supply and Demand Important?

What Is an Example of the Law of Supply and Demand?

# data[].attributes.attachment_link.title
Law of Supply and Demand in Economics: How It Works

# data[].attributes.attachment_link.description
The law of supply and demand explains how changes in a product's market price relate to its supply and demand.

# data[].attributes.body
This picture represents a reduction in supply. An event that will cause a reduction in the quantity supplied at each price will lead to a shift in the supply curve horizontally to the left.

# data[].attributes.body
This website goes into depth about shifting the supply curve. Explain the results that can cause the supply curve to change and that could be a result of technologies and explaining if more efficient or less expensive production process can affect it.

It was stated that there is a list of things that have the effect on the supply curve and have the ability to shift it like:

- Number of sellers.
- Expectations of sellers.
- Price of raw materials
- Technology.
-Other prices.

It also gave an easy example, stating that if there was a new technology and it reduced the cost of gaming console production for manufacturers, that will affect the supply curve and the output of console will increase, meaning that the technological advancement has caused a change in supply.

# data[].attributes.attachment_link.readable_text
What Is Change In Supply?

Change in supply refers to a shift, either to the left or right, in the entire price-quantity relationship that defines a supply curve.

Key Takeaways

Understanding Change in Supply

A change in supply is an economic term that describes when the suppliers of a given good or service alter production or output. A change in supply can occur as a result of new technologies, such as more efficient or less expensive production processes, or a change in the number of competitors in the market.

A change in supply leads to a shift in the supply curve, which causes an imbalance in the market that is corrected by changing prices and demand. An increase in the change in supply shifts the supply curve to the right, while a decrease in the change in supply shifts the supply curve left. Essentially, there is an increase or decrease in the quantity supplied that is paired with a higher or lower supply price.

The general consensus amongst economists is that these are the primary factors that cause a change in supply, which necessitates the shifting of the supply curve:

Number of sellers

Expectations of sellers

Price of raw materials

Technology

Other prices

For example, if a new technology reduces the cost of gaming console production for manufacturers, according to the law of supply the output of consoles will increase. With more output in the market, the price of consoles is likely to fall, creating greater demand in the marketplace and higher overall sales of consoles. This technological advancement has caused a change in supply.

Supply and Demand Curves

The effects of changing supply and demand are found by plotting the two variables on a graph. The horizontal X-axis represents quantity and the vertical Y-axis represents price.

The supply and demand curves intersect to form an "X" in the middle of the graph; the supply curve points upward and to the right, while the demand curve points downward and to the right. Where the two curves intersect is the price and quantity, based on current levels of supply and demand.

A positive change in supply when demand is constant shifts the supply curve to the right, which results in an intersection that yields lower prices and higher quantity. A negative change in supply, on the other hand, shifts the curve to the left, causing prices to rise and the quantity to decrease.

Change in Supply Example

During the early 2010s, the development of hydraulic fracturing, or "fracking", as a method to extract oil from shale rock formations in North America caused a positive change in supply in the oil market. Non- OPEC oil production rose by over one million barrels per day, with most of the oil coming from fracking activity in North America.

Because of the increase in the supply of oil, the per-barrel price of oil, which had reached an all-time high of $147 in 2008, plunged as low as $27 in Feb. 2016. Economists predicted that lower prices would create greater demand for oil, although this demand was tempered by deteriorating economic conditions in many parts of the world.

# data[].attributes.attachment_link.description
Change in supply refers to a shift, either to the left or right, in the entire price-quantity relationship that defines a supply curve. A change in supply is an economic term that describes when the suppliers of a given good or service alter production or output.

# data[].attributes.body
This website went into details about this topic as it included information about the change in supply and how this can be represented in the graphs, and the many causes that can lead to a shift in the supply curve.

The supply is very helpful to indicate the quantity supplied at different prices during a specific period of time, and it can be represented graphically by the curve of supply. The quantity supplied of a decent or administration is the amount sellers will sell at a specific cost during a specific period (with no other changes in the other things).

# data[].attributes.attachment_link.readable_text
Learning Objectives

1. Define the quantity supplied of a good or service and illustrate it using a supply schedule and a supply curve.

2. Distinguish between the following pairs of concepts: supply and quantity supplied, supply schedule and supply curve, movement along and shift in a supply curve.

3. Identify supply shifters and determine whether a change in a supply shifter causes the supply curve to shift to the right or to the left.

What determines the quantity of a good or service sellers are willing to offer for sale? Price is one factor; ceteris paribus, a higher price is likely to induce sellers to offer a greater quantity of a good or service. Production cost is another determinant of supply. Variables that affect production cost include the prices of factors used to produce the good or service, returns from alternative activities, technology, the expectations of sellers, and natural events such as weather changes. Still another factor affecting the quantity of a good that will be offered for sale is the number of sellers-the greater the number of sellers of a particular good or service, the greater will be the quantity offered at any price per time period.

Price and the Supply Curve

The quantity supplied of a good or service is the quantity sellers are willing to sell at a particular price during a particular period, all other things unchanged. Ceteris paribus, the receipt of a higher price increases profits and induces sellers to increase the quantity they supply.

In general, when there are many sellers of a good, an increase in price results in an increase in quantity supplied, and this relationship is often referred to as the law of supply. We will see, though, through our exploration of microeconomics, that there are a number of exceptions to this relationship. There are cases in which a higher price will not induce an increase in quantity supplied. Goods that cannot be produced, such as additional land on the corner of Park Avenue and 56th Street in Manhattan, are fixed in supply-a higher price cannot induce an increase in the quantity supplied. There are even cases, which we investigate in microeconomic analysis, in which a higher price induces a reduction in the quantity supplied.

Generally speaking, however, when there are many sellers of a good, an increase in price results in a greater quantity supplied. The relationship between price and quantity supplied is suggested in a supply schedule , a table that shows quantities supplied at different prices during a particular period, all other things unchanged. Figure 3.8 "A Supply Schedule and a Supply Curve" gives a supply schedule for the quantities of coffee that will be supplied per month at various prices, ceteris paribus. At a price of $4 per pound, for example, producers are willing to supply 15 million pounds of coffee per month. A higher price, say $6 per pound, induces sellers to supply a greater quantity-25 million pounds of coffee per month.

A supply curve is a graphical representation of a supply schedule. It shows the relationship between price and quantity supplied during a particular period, all other things unchanged. Because the relationship between price and quantity supplied is generally positive, supply curves are generally upward sloping. The supply curve for coffee in Figure 3.8 "A Supply Schedule and a Supply Curve" shows graphically the values given in the supply schedule.

A change in price causes a movement along the supply curve; such a movement is called a change in quantity supplied . As is the case with a change in quantity demanded, a change in quantity supplied does not shift the supply curve. By definition, it is a movement along the supply curve. For example, if the price rises from $6 per pound to $7 per pound, the quantity supplied rises from 25 million pounds per month to 30 million pounds per month. That's a movement from point A to point B along the supply curve in Figure 3.8 "A Supply Schedule and a Supply Curve".

Changes in Supply

When we draw a supply curve, we assume that other variables that affect the willingness of sellers to supply a good or service are unchanged. It follows that a change in any of those variables will cause a change in supply , which is a shift in the supply curve. A change that increases the quantity of a good or service supplied at each price shifts the supply curve to the right. Suppose, for example, that the price of fertilizer falls. That will reduce the cost of producing coffee and thus increase the quantity of coffee producers will offer for sale at each price. The supply schedule in Figure 3.9 "An Increase in Supply" shows an increase in the quantity of coffee supplied at each price. We show that increase graphically as a shift in the supply curve from S ₁ to S ₂. We see that the quantity supplied at each price increases by 10 million pounds of coffee per month. At point A on the original supply curve S ₁, for example, 25 million pounds of coffee per month are supplied at a price of $6 per pound. After the increase in supply, 35 million pounds per month are supplied at the same price (point A′ on curve S ₂).

An event that reduces the quantity supplied at each price shifts the supply curve to the left. An increase in production costs and excessive rain that reduces the yields from coffee plants are examples of events that might reduce supply. Figure 3.10 "A Reduction in Supply" shows a reduction in the supply of coffee. We see in the supply schedule that the quantity of coffee supplied falls by 10 million pounds of coffee per month at each price. The supply curve thus shifts from S ₁ to S ₃.

A variable that can change the quantity of a good or service supplied at each price is called a supply shifter . Supply shifters include (1) prices of factors of production, (2) returns from alternative activities, (3) technology, (4) seller expectations, (5) natural events, and (6) the number of sellers. When these other variables change, the all-other-things-unchanged conditions behind the original supply curve no longer hold. Let us look at each of the supply shifters.

Prices of Factors of Production

A change in the price of labor or some other factor of production will change the cost of producing any given quantity of the good or service. This change in the cost of production will change the quantity that suppliers are willing to offer at any price. An increase in factor prices should decrease the quantity suppliers will offer at any price, shifting the supply curve to the left. A reduction in factor prices increases the quantity suppliers will offer at any price, shifting the supply curve to the right.

Suppose coffee growers must pay a higher wage to the workers they hire to harvest coffee or must pay more for fertilizer. Such increases in production cost will cause them to produce a smaller quantity at each price, shifting the supply curve for coffee to the left. A reduction in any of these costs increases supply, shifting the supply curve to the right.

Returns from Alternative Activities

To produce one good or service means forgoing the production of another. The concept of opportunity cost in economics suggests that the value of the activity forgone is the opportunity cost of the activity chosen; this cost should affect supply. For example, one opportunity cost of producing eggs is not selling chickens. An increase in the price people are willing to pay for fresh chicken would make it more profitable to sell chickens and would thus increase the opportunity cost of producing eggs. It would shift the supply curve for eggs to the left, reflecting a decrease in supply.

Technology

A change in technology alters the combinations of inputs or the types of inputs required in the production process. An improvement in technology usually means that fewer and/or less costly inputs are needed. If the cost of production is lower, the profits available at a given price will increase, and producers will produce more. With more produced at every price, the supply curve will shift to the right, meaning an increase in supply.

Impressive technological changes have occurred in the computer industry in recent years. Computers are much smaller and are far more powerful than they were only a few years ago-and they are much cheaper to produce. The result has been a huge increase in the supply of computers, shifting the supply curve to the right.

While we usually think of technology as enhancing production, declines in production due to problems in technology are also possible. Outlawing the use of certain equipment without pollution-control devices has increased the cost of production for many goods and services, thereby reducing profits available at any price and shifting these supply curves to the left.

Seller Expectations

All supply curves are based in part on seller expectations about future market conditions. Many decisions about production and selling are typically made long before a product is ready for sale. Those decisions necessarily depend on expectations. Changes in seller expectations can have important effects on price and quantity.

Consider, for example, the owners of oil deposits. Oil pumped out of the ground and used today will be unavailable in the future. If a change in the international political climate leads many owners to expect that oil prices will rise in the future, they may decide to leave their oil in the ground, planning to sell it later when the price is higher. Thus, there will be a decrease in supply; the supply curve for oil will shift to the left.

Natural Events

Storms, insect infestations, and drought affect agricultural production and thus the supply of agricultural goods. If something destroys a substantial part of an agricultural crop, the supply curve will shift to the left. The terrible cyclone that killed more than 50,000 people in Myanmar in 2008 also destroyed some of the country's prime rice growing land. That shifted the supply curve for rice to the left. If there is an unusually good harvest, the supply curve will shift to the right.

The Number of Sellers

The supply curve for an industry, such as coffee, includes all the sellers in the industry. A change in the number of sellers in an industry changes the quantity available at each price and thus changes supply. An increase in the number of sellers supplying a good or service shifts the supply curve to the right; a reduction in the number of sellers shifts the supply curve to the left.

The market for cellular phone service has been affected by an increase in the number of firms offering the service. Over the past decade, new cellular phone companies emerged, shifting the supply curve for cellular phone service to the right.

It was cookies that lured the monks of St. Benedict's out of the egg business, and now private retreat sponsorship is luring them away from cookies.

St. Benedict's is a Benedictine monastery, nestled on a ranch high in the Colorado Rockies, about 20 miles down the road from Aspen. The monastery's 15 monks operate the ranch to support themselves and to provide help for poor people in the area. They lease out about 3,500 acres of their land to cattle and sheep grazers, produce cookies, and sponsor private retreats. They used to produce eggs.

Attracted by potential profits and the peaceful nature of the work, the monks went into the egg business in 1967. They had 10,000 chickens producing their Monastery Eggs brand. For a while, business was good. Very good. Then, in the late 1970s, the price of chicken feed started to rise rapidly.

"When we started in the business, we were paying $60 to $80 a ton for feed-delivered," recalls the monastery's abbot, Father Joseph Boyle. "By the late 1970s, our cost had more than doubled. We were paying $160 to $200 a ton. That really hurt, because feed represents a large part of the cost of producing eggs."

The monks adjusted to the blow. "When grain prices were lower, we'd pull a hen off for a few weeks to molt, then return her to laying. After grain prices went up, it was 12 months of laying and into the soup pot," Father Joseph says.

Grain prices continued to rise in the 1980s and increased the costs of production for all egg producers. It caused the supply of eggs to fall. Demand fell at the same time, as Americans worried about the cholesterol in eggs. Times got tougher in the egg business.

"We were still making money in the financial sense," Father Joseph says. "But we tried an experiment in 1985 producing cookies, and it was a success. We finally decided that devoting our time and energy to the cookies would pay off better than the egg business, so we quit the egg business in 1986."

The mail-order cookie business was good to the monks. They sold 200,000 ounces of Monastery Cookies in 1987.

By 1998, however, they had limited their production of cookies, selling only locally and to gift shops. Since 2000, they have switched to "providing private retreats for individuals and groups-about 40 people per month," according to Brother Charles.

The monks' calculation of their opportunity costs revealed that they would earn a higher return through sponsorship of private retreats than in either cookies or eggs. This projection has proved correct.

And there is another advantage as well.

"The chickens didn't stop laying eggs on Sunday," Father Joseph chuckles. "When we shifted to cookies we could take Sundays off. We weren't hemmed in the way we were with the chickens." The move to providing retreats is even better in this regard. Since guests provide their own meals, most of the monastery's effort goes into planning and scheduling, which frees up even more of their time for other worldly as well as spiritual pursuits.

Answer to Try It! Problem

DVD rental store clerks are a factor of production in the DVD rental market. An increase in their wages raises the cost of production, thereby causing the supply curve of DVD rentals to shift to the left [Panel (a)]. ( Caution: It is possible that you thought of the wage increase as an increase in income, a demand shifter, that would lead to an increase in demand, but this would be incorrect. The question refers only to wages of DVD rental store clerks. They may rent some DVD, but their impact on total demand would be negligible. Besides, we have no information on what has happened overall to incomes of people who rent DVDs. We do know, however, that the cost of a factor of production, which is a supply shifter, increased.)

An increase in the price of DVD rentals does not shift the supply curve at all; rather, it corresponds to a movement upward to the right along the supply curve. At a higher price of P ₂ instead of P ₁, a greater quantity of DVD rentals, say Q ₂ instead of Q ₁, will be supplied [Panel (b)].

An increase in the number of stores renting DVDs will cause the supply curve to shift to the right [Panel (c)].

# data[].attributes.attachment_link.description
Define the quantity supplied of a good or service and illustrate it using a supply schedule and a supply curve. Distinguish between the following pairs of concepts: supply and quantity supplied, supply schedule and supply curve, movement along and shift in a supply curve.