Supply Curve Shifts: Diagrammatic Description and Interpretation

This lecture focuses on understanding and interpreting shifts in the supply curve. It begins with a recap of the law of supply and the derivation of the supply curve under the assumption of ceteris paribus. The lecture then explores the effects of removing this assumption, leading to shifts in the supply curve due to other factors. Two types of shifts are discussed: outward shifts, which increase quantity supplied at each price, and inward shifts, which decrease it. The lecture concludes with a summary and a preview of the next topic, which will cover the causes of supply curve shifts.

Describe the impact of an inward shift on the quantity supplied at various prices.

How do changes in factors other than price affect the supply curve?