What happens to supply curve when determinants changes?

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2026-04-15 01:10

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When determinants of supply, such as production costs, technology, or the number of suppliers, change, the supply curve shifts. An increase in production costs or fewer suppliers typically causes the supply curve to shift left, indicating a decrease in supply. Conversely, advancements in technology or a reduction in costs can shift the supply curve to the right, indicating an increase in supply. These shifts reflect changes in the quantity of goods that producers are willing and able to sell at various price levels.

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