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Lesson· Supply, Demand, and Equilibrium· 19 of 31

What Shifts the Supply Curve?

Alex Tabarrok
Alex TabarrokGeorge Mason University

What shifts the supply curve? Anything that changes a supplier's costs. Learn how input costs, technology, taxes, trade, and even expectations shift supply in economics.

You’ll learn:

  • Why higher costs shift supply up and to the left
  • Why lower costs shift supply down and to the right
  • How improvements in technology increase supply
  • How taxes, subsidies, and input prices affect producers
  • How trade and market entry affect supply
  • How opportunity costs and expectations influence supply

Using clear examples—from strawberries and blueberries to lumber, bagels, and orange juice—we show how economists think about supply shifts in the real world.

CC BY-ND 4.0 License