Supply Shifters

A change in the cost of inputs.

• Shift in Supply

• Shift in Demand

A change in producer expectations.

• Shift in Supply

• Shift in Demand

A change in government subsidies.

• Shift in Supply

• Shift in Demand

A major natural disaster occurs.

• Shift in Supply

• Shift in Demand

What is the likely effect on the supply curve of a product if there is an expected future increase in the price of the product?

• It shifts to the right now, anticipating higher future sales

• It shifts to the left now, as producers wait to sell at higher prices

• It remains unchanged

• It becomes perfectly elastic

This graph demonstrates...

• Decrease in demand

• Increase in demand

• Increase in supply

• Decrease in supply

What would be an example of a shift in the supply curve to the left?

• A decrease in the price of raw materials

• An increase in the number of producers

• A natural disaster that destroys part of the production capacity

• A technological advancement that makes production more efficient

Which curve shows what would happen to the overall supply of coffee in Citrus Heights if most of the coffee shops closed down.

If a technological advancement makes production more efficient, how does this affect the supply curve?

• It shifts to the right, indicating an increase in supply

• It shifts to the left, indicating a decrease in supply

• It remains unchanged but moves upward

• It remains unchanged but moves downward

An improvement in manufacturing technology.

• Shift in Supply

• Shift in Demand