Describe five factors that may cause a shift in a good’s supply curve. explain how other goods could impact the supply of a good. (Site 1)

Explanation:

Supply can be defined as the amount of goods a producer is willing to sell at a particular period of time.

The supply of goods is determined by price, the higher the price; the higher the quantity supplied, the lower the price; the lower the quantity supplied. This is because producers makes more Profits by selling at higher prices.

Supply curve is a curve that shows the relationship between quantity supplied and price.

Factors affecting the supply curve

1. Change in costs of production: The change in cost of production such as cost of labor and raw materials can shift the supply curve.

2. Number of sellers: Increase in the number of sellers will cause an increase in supply causing a shift in supply curve.

3. Supply of related goods: A change in the supply of related goods can either shift the supply curve to the right or to the left.

4. Weather: Some product are more supplied because of the increase in demand during a particular period especially agricultural product.

5. Government activities: The activities of the government such as taxes and subsidies will cause a change in cost of production thereby shifting the supply curve.

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