Overview
Shifts in the supply curve are crucial for understanding how external factors influence market dynamics. A rightward shift indicates an increase in supply, often due to lower production costs or technological advancements, while a leftward shift signifies a decrease in supply, typically caused by hi...
Key Terms
Example: The supply curve slopes upward, indicating that higher prices lead to higher quantities supplied.
Example: A rightward shift occurs when production costs decrease.
Example: A leftward shift can happen due to increased taxes on production.
Example: At market equilibrium, the quantity supplied equals the quantity demanded.
Example: Higher production costs can lead to a leftward shift in the supply curve.
Example: New technology can lead to a rightward shift in the supply curve.